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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.
Insight Partners, Blackstone, and Clearlake Capital, the joint owners of Diligent Corporation, are considering strategic options for the corporate governance software provider, including a potential sale that could value the business at around $7bn, including debt, according to a report by Reuters.
The company specializes in an instrument called venture debt -- or loans made at high interest rates. For this reason, once the start-up reaches a maturity point generating consistent cash flow, it may seek out alternative financing options like debt. Hercules Capital: 11.5% Horizon Technology Finance: 9.9%
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. The amount of debtbanks can provide is typically lower than direct lenders, so the preferred equity amount would stand to be higher should they win.
Rather, many of the companies in Ares' portfolio are lower middle market businesses that go overlooked by investmentbanks or private equity investors. ARCC Price to Book Value data by YCharts At a price-to-book (P/B) ratio of just 1.1, Ares stock is trading essentially in line with its 10-year average.
Blackstone Credit and other major private debt managers such as Ares Management Corp. and HPS Investment Partners are increasingly able to write larger cheques for borrowers as their coffers swell. The industry growth is being driven by investmentbank caution around underwriting leveragedbuyouts given volatile market conditions.
Leveragedbuyout financings accounted for almost half (42%) of all UK transactions in H1 2024, compared with just 29% in H1 2023, according to the latest MidCapMonitor report by global investmentbank Houlihan Lokey.
Global law firm White & Case is expanding its global debt finance practice and has appointed Lauren Winter, who has joined from Shearman & Sterling where she was Counsel, as a Partner in London. White & Case has dedicated bank lending, private credit & direct lending and borrower finance teams.
Private credit lenders and banks are vying to offer debt financing for a potential acquisition of US education software provider PowerSchool Holdings, according to a report by Bloomberg citing people with knowledge of the matter.
Hercules Capital (NYSE: HTGC) is a BDC that invests in technology, life sciences, and sustainable energy businesses. The company typically supports start-ups that have raised funding from venture capital or private equity firms and are looking to augment the balance sheet with some debt. Hercules Capital: Dividend yield 10.5%
It specializes in an investment vehicle called venture debt. Founders seeking capital may eventually look for a loan since debt doesn't come attached to any ownership share of the company. However, the catch is that this debt typically carries a much higher interest rate than a loan from a bank.
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.
Dee Kuchukulla (New York) guides leading private equity sponsors and their portfolio companies on an array of complex transactions, from leveragedbuyouts and sales to carve-outs, cross-border deals, joint ventures, and take-privates across industries. She brings a deep understanding of technology and consumer brands.
Funds raised money, bought businesses, loaded them with debt, exited at a profit and convinced happy investors to do it all over again — at ever greater scale. Some top industry figures don’t dispute the perils of gulping down more and more varieties of debt. “On Surging borrowing costs have stalled that engine.
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.
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 investmentbanks. There was no m and a departments in any investmentbank really until the very late seventies. And, and we wanted to have relatively modest leverage.
They grew a business where they issued junk debt. 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. It was between corporate law and investmentbanking.
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.
UK sponsor-backed financing activity experienced a modest slowdown in Q3 2024, as ongoing M&A sluggishness and seasonal dynamics impacted deal flow, according to the latest data from global investmentbank, Houlihan Lokey.
Private credit lenders are in discussions to provide $4.5bn in debt financing for Sycamore Partners potential buyout of Walgreens Boots Alliance, as part of a plan to break up the pharmacy chain into separate business units, according to a report by Bloomberg.
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 are starting to see LBO [leveragedbuyout] activity pick up again.
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. RITHOLTZ: From the equity side or the debt side?
Over the past decade, there has been, for lack of a better word, a democratization of private equity and and private debt. Private debt, private equity stepped into that and really filled that gap for, especially for institutional investors. Leveragebuyouts requires leverage. Some markup.
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