Embedded Workout Teams for Private Credit funds
As the private credit market transitions into a more challenging phase, direct lenders are increasingly faced with stressed or distressed borrowers. A decade of growth and easy capital has given way to a new reality: higher interest rates, softening asset valuations, and mounting liquidity issues are exposing vulnerabilities across many credit portfolios in the UK and EMEA.
Yet many private credit funds are not equipped to deal with the operational demands of managing underperformance in their portfolio companies. Most deal teams were built for growth, not recovery — and few funds maintain in-house restructuring expertise or capacity.
At Cork Gully, we believe there’s a smarter, more efficient way to navigate this cycle: embedded workout teams.
What Is an Embedded Workout Team?
Our embedded model places senior restructuring professionals — with deep experience across sectors and deal structures — directly within or alongside your investment, portfolio, or risk teams. This solution is:
- Flexible – Use as needed, without long-term commitment
- Discreet – Integrated seamlessly with internal operations, without disruption
- Specialist – Led by professionals with real-world turnaround and workout experience
- Independent – Maintains credibility with stakeholders, borrowers, and LPs
Whether the need is short-term triage or more sustained engagement, the model is designed to scale and adapt based on your fund’s requirements.
Why It Works
An embedded team provides a credible, commercially aligned solution without the cost or complexity of permanent hires. It keeps restructuring activity separate from origination, helping to reduce internal conflicts and preserve borrower relationships.
Key benefits include:
- Early intervention to preserve value
- Objective decision-making outside the deal team
- Performance-linked fee structures
- Tactical resourcing without adding overhead