David Karp, Co-Head of Special Situations & Alternative Investments, explores the unique risks facing investors entering the European distressed loan market, emphasizing how borrower consent requirements can significantly impact the ability to acquire and control positions. He explains that when consent is withheld, investors may be forced into participation structures that carry increased counterparty risk, reduced control and lower liquidity compared to direct ownership. Karp highlights the importance of carefully assessing transfer restrictions and structuring trades upfront, as these challenges can undermine investment strategies even before a transaction settles.