Andrew Milgram

So we started our business in an open-ended structure.

Now, it had long commitment terms, but it was essentially at its core an evergreen structure.

And so it demanded that we have this discipline of how are we going to get that capital back to people?

And that...

process of getting capital allocated into a distressed situation and then finding the resolution mechanism that brings it home is built into the DNA of the firm.

It's how we think about investing generally.

Now, the interesting thing about distress is you have to use capital to get capital back.

There's this cycle of capital, capital contribution, resolution that cycles.

And so

You're always thinking about how am I going to drive this investment and create something else out of it?

Then I'm going to create something else out of that.

And you create this daisy chain of opportunities.

One thing leads to another.

One of the things that my partner Paul always says is every single investment is both a complicated business problem and a human drama.

And each one of our investments has had some greater or lesser mix of those two things.

To the individual in these situations, we do this for a living and we've done it essentially our entire careers.

It is familiar to us.

We understand how things are going to work out, how they don't work out.

We're comfortable with a level of ambiguity and uncertainty that other people generally are not.

And so each one of these are the most difficult thing that the other people in it are ever going to go through.