Distressed specialist Longroad Asset Management, based in Stamford Connecticut and Austin, Texas, has closed a debut third-party fund with $183 million (€150.5 million) in commitments.
The fund, called Longroad Capital Partners, will invest in the debt obligations of financially challenged middle-market companies with revenues between $50 million and $500 million, according to a press release. Longroad will seek to enhance the value of the portfolio companies through the application of strategic, operating and financial resources.
Longroad focuses on seeking “negative control” of its target companies, meaning acquiring a large enough position in a company such that no other stake holder or debt holder is able to maneuver during the restructuring process without Longroad’s consent.
“Ideally we are looking for companies that are operationally stable but have accumulated various debt obligations which impair their ability to continue as a viable entity,” said founding partner Paul Coughlin in the statement. “We believe the combination of capital, operating and financial expertise will create powerful solutions for our portfolio companies. We are extremely pleased to have brought together such an experienced group of professionals and look forward to the achievements this talented team is capable of.”
Prior to forming Longroad, Coughlin was general partner and co-founder of CoMac Partners, a distressed investment partnership where he raised and managed over $400 million.
The Longroad team also includes managing director Richard Latto, directors Joseph Catalano, Leon Komkov and Steve Zambito, and principal Anne Whitman.