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Paula Sambo of Bloomberg reports Canada pension fund's credit head wants to take advantage of leveragedbuyout boom: Canada’s largest pension fund plans to nearly double the size of its credit holdings over the next five years, and it’s counting on an upturn in leveragedbuyouts to generate some of that growth.
With slower bank and leveraged loan growth, demand for partners in private credit is high. Private credit provided 65% of loans for the leveragedbuyout (LBO) market in 2021 and 86% for the market as of year to date 2023. But because there will be winners and losers, skilled managers have an opportunity to stand out.
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.
MORGENSON: It can be collateralized loan obligations, now it’s big private debt. Let’s talk about tax loopholes. How on earth is there still a carried interest tax loophole for private equity, hedge funds, and venture capital? Cut my taxes in half, where do I sign up for that? RITHOLTZ: Really interesting.
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