NEWPORT GLOBAL ADVISORS L.P.

Thesis

Newport Global Advisors L.P. is an alternative investment firm founded in 2005, specializing in turnaround and special situation investments, primarily focusing on small and middle-market companies. The firm's core strategy revolves around acquiring below-investment-grade debt instruments at a discount in the secondary markets, aiming to achieve attractive risk-adjusted returns through active portfolio management and balance sheet restructurings. They primarily invest in the debt of distressed companies, as well as reorganized equities. Their investment philosophy is opportunistic and flexible, seeking to capitalize on sector-driven dislocations and idiosyncratic situations. The firm targets companies with enterprise values between $50 million and $750 million. Their investment approach is based on fundamental company and industry analysis, with a focus on business model execution, asset coverage, and cash flow generation, emphasizing capital preservation. The firm manages various investment vehicles, including special situations private equity funds, a distressed credit hedge fund, and separately managed accounts. They actively manage their portfolios and are an SEC-registered investment advisor. While they invest in debt instruments, they do not utilize portfolio-level leverage to enhance returns. Their diversified portfolios typically consist of 20-30 investments. As of December 31, 2025, Newport Global Advisors managed approximately $175 million on a discretionary basis. The firm's debut fund, Newport Global Opportunities Fund, raised $500 million shortly after its inception. The firm's website and public filings do not explicitly state a typical check size per investment deal. However, their target for companies' enterprise values is between $50 million and $750 million.