2025 was a defining year for AEG Partners.
As we marked our 25th anniversary, we also reached a record level of engagement activity — clear evidence of the growing speed, complexity, and severity of the challenges facing companies and stakeholders.
We are grateful to our clients and referral partners who trusted AEG when outcomes mattered most. Across industries and capital structures, we were engaged to stabilize liquidity, reset strategy, align stakeholders, and execute in situations where delay carried real consequences.
Several themes from our experience in 2025 are shaping the restructuring landscape as we move into 2026:
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Stress is Uneven, but Touching Many Industries
Distress extended well beyond any single sector. In healthcare, rising labor costs, reimbursement pressure, and aggressive growth exposed vulnerabilities across behavioral health, dental, urgent care, and nutrition. Consumer-facing businesses, from retail and apparel to consumer lending, grappled with margin compression, inventory imbalances, and tightening credit. Automotive and manufacturing companies faced persistent cost inflation, customer concentration, and capital structures built for a markedly different rate environment. |
Independent Directors are Gaining Importance
The use of independent directors in distressed situations accelerated meaningfully in 2025. Lenders are increasingly turning to independent board members as a method to enhance oversight, improve transparency, and ensure disciplined execution during turnarounds. In select cases, AEG Partners stepped directly into independent board positions, bringing restructuring judgment, credibility, and urgency to the table. |
Market Signals Early Warnings
While several high-profile bankruptcies dominated headlines, broader credit indicators pointed to mounting stress: downgrades outpaced upgrades, default rates continued to rise, and the use of PIK interest increased -- clear signals of tightening conditions heading into 2026. At the same time, new credit activity remained active and spreads on new deals tightened, reflecting a more nuanced and uneven economic environment rather than a uniform downturn. |
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