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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 investment banks and other BDCs. The company's superior reputation and generous returns have attracted some of the largest investors in the world.
Although start-ups can be risky, Hercules has demonstrated that it employs robust duediligence processes before making an investment. Rather, many of the companies in Ares' portfolio are lower middle market businesses that go overlooked by investment banks or private equity investors.
This can require lots of effort when it comes to performing duediligence, and there's always the risk that you could be wrong. Unlike a traditional bank that may pass on a start-up due to its risk profile, Hercules specializes in term loans and other debt structures for venture-backed companies.
Tighter lending conditions and the aftermath of Silicon Valley Bank’s (SVB) collapse caused traditional lenders to step back. With slower bank and leveraged loan growth, demand for partners in private credit is high. A low leverage profile also lowers fund risk in the event asset values fall or losses increase.
And that was very important because when this was the dawning of what is now a big analyst program across the country in all banks and investment banks. There was no m and a departments in any investment bank really until the very late seventies. And I was fortunate to be accepted to both.
And what was interesting was the first leveragedbuyout of a public company happened when I was in graduate school. KLINSKY: In 1979, it was the first leveragedbuyout of a public company. We had sold the family business, maybe buy another family business one day through a leveragedbuyout. KLINSKY: Yeah.
Invested €60 million into a syndicated credit-linked note with a leading global bank headquartered in Europe for a diversified portfolio of corporate loans. 4) HOOPP shared new discussion paper by Stephen Poloz, the ninth Governor of the Bank of Canada. Completed a multi-year forward flow agreement with Exeter Finance LLC, a U.S.
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