Christopher Pucillo, chief investment officer of Solus Alternative Asset Management, said his hedge fund has been finding some of the best distressed investments in toll roads financed prior to the 2008 credit crisis.
Pucillo called the once-bankrupt Indiana Toll Road a “great opportunity” in a Bloomberg Television interview Monday at the Milken Institute Global Conference in Beverly Hills, California. He said the firm, which oversees $6 billion, is also considering debt of a road in Australia and a few in the U.S.
“They are all, one by one, going under,” said Pucillo, a former Morgan Stanley trader, who started Solus in 2007. “We’re seeing the best opportunities in infrastructure. A number of infrastructure investments that were made back in 2008, 2007, 2006 are all going bankrupt.”
The New York-based hedge fund that counts Blackstone Group LP as a stakeholder has about 10 percent of its assets in wireless spectrum that was acquired over multiple years from various bankrupt companies, Pucillo said. The firm has exited its investment in LightSquared Inc., which Solus attempted to buy out of bankruptcy, he said.
Solus focuses on event-driven, distressed and special situation investments, including trading in the securities of bankrupt companies.