Mudrick Capital Management has launched the Mudrick Distressed Opportunity Funds, a family of investment vehicles that will specialize in distressed debt and post-bankruptcy equities.

“Extremely high corporate leverage coupled with a slow earnings recovery has created a pipeline of opportunities for many years to come as an unprecedented amount of businesses, particularly those taken private through leveraged buyouts, will be forced to restructure their balance sheets,” said Jason Mudrick, founder and CIO.

“The recent wave of debt issuances has merely pushed off the inevitable as very few companies are raising equity to deleverage. We have assembled a top-tier team and have a golden opportunity to construct a portfolio devoid of illiquid investments and other legacy issues facing many existing distressed funds.”

Mudrick’s investment team has extensive experience in distressed investing and the firm’s strategy is to invest in deep value opportunities across the capital structure of target investments, with an initial focus on distressed levered loans that Mudrick believes will eventually be restructured into equity.

Prior to founding Mudrick Capital, Mr. Mudrick was a managing director and portfolio manager at Contrarian Capital Management from 2001 to 2008. Before Contrarian, he was an associate in the M&A Investment Banking Group at Merrill Lynch in New York and has served on the board of directors at a number of firms. He holds a JD from Harvard Law School and received his BA from The University of Chicago.