Global restructuring outlook: The credit funds revolution

In this episode of Global Restructuring Outlook 2025, A&O Shearman’s experts dive into one of the most transformative forces in today’s restructuring landscape: the rise of credit funds and private capital investors.  

As traditional bank-led restructurings give way to more flexible, creative, and often more consensual processes, credit funds are reshaping how distressed situations are managed across jurisdictions—from the U.S. and U.K. to Continental Europe and Australia. 

What happens when lenders are no longer bound by prudential regulation? How do looser loan covenants and liability management transactions change the game for borrowers in distress? And what risks emerge when credit funds delay enforcement or disclosure of defaults?  

This episode explores the global implications of these shifts, including the regulatory responses now emerging in markets like Australia, and the growing trend toward out-of-court settlements. 

Join Karen McMaster, Aroen Kuitenbrouwer, Bernhard Herding, Sven Pruefer, Javier Castresana, and Paolo Manganelli—partners in A&O Shearman’s global restructuring group—as they unpack the evolving role of credit funds in distressed deals. 

With deep experience across jurisdictions and sectors, these speakers offer sharp insights into how private capital is driving innovation, litigation, and new deal structures in the restructuring world. 

Global Restructuring Outlook 2025 explores the key legal, financial, and geopolitical developments shaping the restructuring landscape worldwide. Featuring expert insights from across jurisdictions—including the U.S., UK, EU, China, and the UAE—the series examines landmark rulings, evolving insolvency regimes, and the growing influence of private credit. Designed for business leaders and restructuring professionals, each episode offers strategic perspectives on navigating distressed situations and unlocking value in complex, cross-border environments.