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Investmentbanks, which faced significant losses on risky merger and acquisition (M&A) loans due to a spike in global interest rates, are now aggressively returning to the leveragedbuyout (LBO) market — one of the most profitable sectors in finance, according to a report by Bloomberg.
While Hercules and Horizon typically compete for the same business, Ares is slightly different because it focuses on middle-market companies that may fall off the radar of investmentbanks and other BDCs. In fact, even Warren Buffett owns a position in Ares through Berkshire Hathaway 's subsidiary New England AssetManagement.
Wall Street banks including JPMorgan Chase & Co. and Bank of America Corp. are in talks to provide as much as $8 billion in financing for a buyout of DocuSign Inc. has been leaning toward a financing package provided by banks for its potential buyout of Cotiviti Inc. Jefferies Financial Group Inc. KKR & Co.
This is an interesting strategy, and has helped Ares earn a positive reputation among businesses that often go overlooked by large investmentbanks. By contrast, Ares has the ability to complete much more sophisticated deals, including leveragedbuyouts.
Ares Management Corp. It has vaulted to the top rungs of the alternative-assetmanagement world by focusing on what it does best: private credit. Yet, like its peers, Ares feels compelled to diversify into other asset classes, such as real estate, infrastructure, and private equity. Apollo Global Management, and KKR.
Historically, the focus was on leveragedbuyouts and cost-cutting to boost profitability, but this approach is no longer sufficient. With over 15 years of experience in investmentbanking, assetmanagement, and private equity, Lou helps align Zanders’ value proposition with investor value creation strategies.
“On things like NAV loans and margin loans, it’s just additional leverage and if things go against you, you can have a problem,” Stavros, KKR’s cohead of global private equity, said at the Berlin event. Many were acquired at the buyout boom’s zenith in 2021 and 2022, and often paid for by piling them up with floating-rate debt.
The report cites unnamed sources familiar with the matter as revealing that private credit firms, including HPS Investment Partners and Ares Management, are among those vying to finance what would be one of the largest leveragedbuyout (LBO) debt deals in over a decade.
billion) funds approach to investing. After nearly 20 years in investmentbanking, at Deutsche Bank and then Credit Suisse, in 2013 he moved to Borealis, OMERS infrastructure arm, to run infrastructure globally and then head the capital markets team. We decided to focus on our buyout efforts in North America.
So, I graduated from business school in 1987 and went to GE Capital for two years, financing leveragedbuyouts. I mean, you know, I probably shouldn’t have been doing it because I had been a journalist covering public schools and knew nothing about leveragedbuyouts. And I actually started out of business school.
I was working directly with the CEO and president of both companies, but I realized that the biotech vertical was not my playing field for the long term, hence the NBA at Harvard to find another career path and, and that led me into assetmanagement. When it comes to any assetmanagement business, Barry, two things important.
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