Distressed investing is a niche market segment that targets deep value opportunities arising from companies that encounter financial difficulties. The strategy can be viewed as an alternative approach to private equity since investment is frequently done with the objective of gaining control of the company. Opportunities in the distressed sector are most abundant after periods of excessive credit extension and an increase in financial leverage. We explore this often misunderstood strategy to provide insights into the market, the bankruptcy process, investment considerations and the role it can play in client portfolios. Distressed investment opportunities covered in this paper are distinct from the mortgage credit and credit opportunity funds currently being raised to take advantage of stressed and distressed situations in the broader fixed income markets.