“Great Recession” seen lasting 3 years, experts say

The current recession will last at least three years and possibly longer absent a revival in credit markets, according to investors who specialize in distressed debt and bankruptcy.

“This is going to be a three- to four-year disaster,” said Michael Psaros, managing partner at KPS Capital Partners, at a restructuring conference in New York.

The United States is going through a “Great Recession,” which will provide investors in distressed assets with unprecedented opportunities, he said.

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“We are going to invest an awful lot of money this year,” Psaros said on Thursday. “There is an inexhaustible supply of bad management out there.”

KPS Capital, which manages special situations funds and private equity funds with capital exceeding $1.8 billion, largely sat on the sidelines last year. The firm is ramping up its investments this year, he said.

• A d v e r t i s e m e n t

“We’re just very excited about this year and next,” he said.

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