Steve Emerson announced the formation of Dry Creek Capital Partners, a special situations investing group formed to provide a platform for investments in debt obligations of distressed commercial real estate and small business debt.
Dry Creek focuses on credit opportunities such as the acquisition of sub/non-performing commercial real estate loans, lower middle-market and small business distressed debt and special situations. Mark Ziegler, Nate Cann and Andrew Young, who have worked together for more than 10 years at predecessor firms within the distressed loan market, joined Emerson as partners at the new firm.
“We formed Dry Creek to build on our history together finding creative capital solutions in complex situations for both financial institutions and distressed borrowers,” Emerson said.
Dry Creek also completed an exclusive investment joint venture with 400 Capital Management. The joint venture brings a range of capital solutions to the Dry Creek platform and an added level of expertise. The venture has made multiple loan acquisitions from several different financial institutions since its launch.
“We are excited about the prospects for this venture. We have known the Dry Creek team for a very long time and are thrilled to be working directly with them to pursue opportunities in the distressed commercial loan market,” Chris Hentemann, managing partner and CIO of 400 Capital Management, said.
“The significant commitment from 400CM puts Dry Creek in a superior position to take advantage of the increasing flows of distressed commercial debt we expect to see over the coming years. We have already seen a tremendous increase in deal activity in 2021. And, as government program support is eliminated over the course of the year, we expect there will be additional needs for innovative capital solutions,” Ziegler said.
