Credit Due – How buyout funds are bypassing a tighter bank market
Credit Due – How buyout funds are bypassing a tighter bank market
With overstretched syndicating banks limiting the amount of debt that is available to buyout sponsors, and the cost of debt rising, this Insight Report examines how deal volumes will be affected by new borrowing conditions, and the new financing levers and forms of leverage available to sponsors.
The ‘Credit Due – How buyout funds are bypassing a tighter bank market’ special report comprises zero separate articles listed below, these can be read individually or as a sequence.
The carnage in the syndicated bank market looks set to continue and the near-term liquidity of direct lenders is being squeezed. Private equity sponsors are looking for other levers to pull on their buyout financing…
There is a problem in
Large pension fund investors have increased their allocations to private credit in memory of how the asset class performed post-global financial crisis.
Last year, private credit assets under management exceeded $1 trillion for the first time. Over the next five
Fund financing – which includes subscription lines of credit and NAV-based loans – is set to grow even as capital markets slow. A measured approach is advised…
In a slower credit market, there is one form of debt financing that
Loan defaults in 2023 are not predicted to match previous recessions, but a disproportionate amount will come from private equity-owned companies. Cov-lite structures should give them an upper hand in negotiations…
Corporate loan defaults are slowly ticking up and are
