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PE rethinks NAV loans as investors push back

Private Equity Wire

Net-asset-value (NAV) loans, which layer additional leverage onto private companies already burdened with significant debt, have come under scrutiny, particularly when buyout firms use them to fund distributions rather than growth. Other investors who are sitting on a lot of cash may see this as an expensive way to get cash back.

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Blackstone, Rialto, and CPP Acquire $1.2bn Stake in Signature Bank’s CRE Debt

Private Equity Insights

The moves bolstered the banking industry’s support for the private equity sector, a major source of financing for private companies and property transactions. Without “the low rate purchase financing provided, the value would have been less,” he said in an email.

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Want $1,000 in Super-Safe Dividend Income in 2024? Invest $9,750 Into the Following 3 Ultra-High-Yield Stocks

The Motley Fool

I'm talking about smaller, generally unproven private companies. Smaller, unproven companies usually have limited options when it comes to accessing traditional debt and credit markets. When these smaller businesses land financing deals, they typically have attached interest rates that are higher than the market average.

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Will Blue Origin Buy Boeing and Lockheed's Space Venture?

The Motley Fool

On the first question, although Blue Origin is a private company and so does not disclose its finances, it is owned and financed by Amazon founder Jeff Bezos. Not knowing their identities, investors have no idea (1) whether they could afford a purchase price (which I've ballparked at $5.2 Blue Origin is different.

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2 Ultra-High-Yield Stocks to Buy Hand Over Fist

The Motley Fool

Ares is a leading business development company ( BDC ) based in the U.S. As a direct lender, it supplies the capital that private companies need to fund and grow their operations. At its current yield of 9.5%, this financial stalwart offers one of the largest cash payouts in the stock market.

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The 5 Favorite Investments of Young Multimillionaires

The Motley Fool

If you can build a successful business and increase your income, it can have a huge impact on your finances. Direct investment into companies Rounding out the top five is investing directly into companies, and 22% of young multimillionaires believe this is one of the best growth opportunities. It's similar to private equity.

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Prediction: Billionaires Will Buy This Cryptocurrency That Could Soar 23,900%, According to Wealth Manager Jake Claver

The Motley Fool

Likewise, Ripple looks ready to disrupt the international finance system with game-changing results for early token holders. Ripple Labs is a private company, but Claver argues that it could use a stock sale to raise operating capital and legitimize the XRP-based payments system.