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Banks ramp up leveraged buyouts as interest rates fall

Private Equity Wire

Investment banks, 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 leveraged buyout (LBO) market — one of the most profitable sectors in finance, according to a report by Bloomberg.

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How a Weekend Steel Deal Could Fuel a 2024 Bull Market

The Motley Fool

The Pittsburgh-based iconic steel company received a buyout bid from a Japanese counterpart that could reshape the entire steelmaking industry. Steel debt. With companies that rely on considerable leverage in their operations, the rise in interest rates is still working its way through income statements.

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Ares Faces Its Biggest Decision Yet: Stick With Private Credit or Become an Alts Supermarket

Private Equity Insights

But Ares executives insist their firm remains steadfast in its goal of offering institutional investors more than just private debt. William Benjamin, head of Ares’ real estate group, describes the parent company’s prowess in private debt as an invaluable fundraising tool. Thus far, Ares has diversified farthest into real estate.

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Transcript: Victor Khosla, Strategic Value Partners

The Big Picture

Victor has had a fascinating career, stood up the distressed debt department at Citibank before doing the same thing at Merrill Lynch a few years later. They do everything from hard assets like real estate, infrastructure, aircraft, power plants, to private debt, event driven opportunities. 15 businesses with over 90,000 employees.

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Transcript: Steven Klinsky

The Big Picture

They grew a business where they issued junk debt. And what was interesting was the first leveraged buyout of a public company happened when I was in graduate school. KLINSKY: In 1979, it was the first leveraged buyout of a public company. There was no junk debt available in the market.

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Transcript: Armen Panossian

The Big Picture

So, when I was in graduate school, I thought about all the different types of investing or advisory work I could do, and I, you know, really triangulated on distressed debt being the most interesting part of the, of the markets where I could participate in PWA Capital. Ritholtz ] 00:03:30 Yeah, Sandberg is a fascinating guy.

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OTPP and Brookfield Infrastructure Partners Acquire Compass Datacenters

Pension Pulse

also served as debt financing advisor. billion-plus bidding war for Compass Datacenters: Brookfield Infrastructure Partners LP (BIP.N) billion, including debt , according to people familiar with the matter. Clearly Brookfield won that bidding war paying more than $5.5 Advisors Goldman Sachs & Co.

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