Private equity firms and distressed debt investors are opposites, and these days opposites attract, according to an article by The Wall Street Journal. Private equity firms have begun launching hedge funds, including those specializing in distressed debt, while hedge funds are getting involved in private equity deals.

An example of this new synergy is Jeff Aronson of Angelo Gordon & Co., a main player in the debt world and Mark Gallogly, responsible for private equity at Blackstone Group. The two have formed a fund that merges both sectors.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.