Scott Church is joined by Ian Cash of Alchemy Partners for a conversation about special situations investing in Europe, and why a strategy built on buying what others are selling requires as much temperament as it does analysis. Ian established Alchemy's Special Opportunities business in 2006, two years before the global financial crisis, and has spent his career in European distressed debt and special situations since the early 1990s. He explains the two premises the business was founded on, why he considers the strategy all-terrain rather than cyclical, and why the hardest and most important work is answering a deceptively simple question: is this a good business? The conversation moves through why Europe remains structurally attractive despite being harder to navigate than the US, how theme-based sourcing has shaped two decades of activity in sectors like UK house-building and telecoms, and Ian's candid assessment of private credit's growth, the pressure now showing in public windows into that market, and what a pullback in dry powder could mean for credit pricing. Ian also reflects on moving from a bank trading desk to a closed-end fund, why alignment changes completely when profit share sits years out rather than at the end of each calendar year, and why a partner-owned firm with no interest in building enterprise value ends up making different decisions. In this episode: The fund structure and credit cycle premises behind Alchemy Special OpportunitiesWhy special situations returns are driven by regulatory, capital, market and technology cycles rather than the economic cycleThe characteristics of a bad business, and why avoiding them is the primary defence against lossesWhy Europe's fragmentation is a feature rather than a flawTheme-based sourcing and the durability of certain sector ideasIan's view on private credit growth, gated retail structures and where default rates sit todayThe contrarian temperament, diversification in time, and why you can never buy at the bottomTrust, meritocracy and what a stable partnership actually does for a firm RedeCast Legal Disclaimer The information discussed in this podcast is for general information purposes only and does not constitute financial advice, investment recommendation, invitation or inducement to engage in investment activity or an offer to buy or sell any financial product. The views expressed are those of the speakers as at the time of the recording and do not necessarily reflect those of Rede Partners or the firm employing the guest speaker (Guest) or any of their respective affiliates. The information discussed, including any forward-looking statements, should not be relied upon for any purpose and listeners should seek independent professional advice before making any investment decisions. References to specific companies or products are for illustrative purposes only and do not constitute an endorsement or recommendation. None of the content should be copied, distributed or reproduced. Past performance, where indicated, is not a guarantee or reliable indicator of future results. Any references to past performance, track records, or investment returns are for illustrative purposes only. Actual results may differ materially from any projections, estimates, or implied performance discussed. Rede Partners is engaged by its clients to market their funds and the firm employing the Guest and/or its affiliates is or has been a client of Rede. In the U.S. Rede Partners operates through its wholly owned subsidiary, Rede Partners Americas LLC, which is a registered broker-dealer with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority, Inc. Rede is not a current advisory client or fund investor of its client funds, although its partners and employees themselves invest in client funds via a pooled vehicle established for such purpose which may have negotiated beneficial economic terms in connection therewith (e.g., reduced or no management fees and/or carried interest). For providing its services, Rede is entitled to cash compensation paid by the client rather than the client fund. Rede has a significant economic incentive to solicit investors to commit capital to their clients' funds, resulting in a material conflict of interest on its part. No compensation has been received by Rede Partners in connection with the Guest's participation in this recording and the views discussed herein do not constitute an endorsement or testimonial of Guest, its employer or its private funds. The information contained in the Podcast is believed to be accurate as of the date of publication and will not be updated or supplemented to reflect subsequent events.
