Overview
A. MHR Fund Management LLC (also referred to as “we”, the “Firm” or “MHR”) is
a leading New York-based private investment firm, founded in 1996 by Mark H.
Rachesky, M.D., that focuses on investing in distressed or undervalued middle-
market companies and assets for a variety of private fund clients. Mark H.
Rachesky is the Firm’s Chief Investment Officer and indirect principal owner
though MHR Holdings LLC.
B. MHR specializes in offering investment management services to private investment
funds. MHR invests in middle-market companies primarily through distressed debt
and bespoke structured financings, and forms specialized platforms to capitalize on
mispriced assets in niche industries. MHR’s value-oriented approach focuses on
sourcing through our established industry relationships. MHR is a hands-on
investor that seeks to leverage its control or significant influence to work
collaboratively with its portfolio companies, which we believe is essential to
preserving and creating value. MHR also forms partnerships for its funds with
specialized management teams to exploit distressed or undervalued opportunities it
identifies in certain industries. We employ a rigorous, due diligence-focused
investment process with a strong emphasis on downside protection that capitalizes
on our deep industry knowledge
and analytical capabilities. MHR may utilize the
bankruptcy or restructuring process to improve both the capital structure and the
cost structure of portfolio companies. In addition, the Firm may seek to create long-
term value beyond the turnaround process by continuing to improve operations,
growing companies and effectuating successful exits. MHR believes that its focus
on both restructuring and growing companies is differentiated and serves to
generate attractive returns for its investors across various investing environments.
C. The Firm tailors its advisory services to the individual needs and specified
investment mandates of its client funds. We adhere to the investment strategy set
forth in our client funds’ private placement memoranda and operating agreements,
including concentration limits and other applicable guidelines. These types of
terms are all arranged on a case-by-case basis.
D. MHR does not participate in wrap fee programs.
E. As of December 31, 2023, MHR managed $5,343,310,835, which includes each
fund’s gross asset value (including, with respect to the private equity funds, the
unfunded capital commitments). As of December 31, 2023, MHR’s private equity
funds represent approximately 89.50% of the total assets managed by the Firm. We
manage clients’ assets only on a discretionary basis.