Article: Distressed debt funds preparing to pounce.(services and statistics of investment companies)

Byline: Arleen Jacobius

Institutional investors and private equity firms are awakening to the possibility that yesterday's buyout might be tomorrow's distressed debt deal.

In the first half of this year, distressed debt funds raised $23.7 billion, up from $19 billion raised in all of 2006, according to Dow Jones Private Equity Analyst, New York.

"There was a big spike in distressed debt funds raised this year,'' said Gary Robertson, senior vice president with San Francisco-based consulting firm Callan Associates Inc.

Private equity firms, including the Blackstone Group and Kohlberg Kravis Roberts & Co., are betting that distressed debt ...

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