Private Credit: Outlook for 2021

“If you liked private credit before, you’ll really like it now.” That’s the way one practioner neatly summed up how investors should be thinking about the asset class in a COVD environment. The trends supporting that thesis this year should continue well into 2021. A sizzling economy doesn’t really help credit. No worry there. Unemployment […]

Private Credit: Should investors be worried?

With all the distractions of the moment, it’s hard to remember that US GDP dropped 33% in the second quarter – the sharpest decline in history. It looks, though, like the third quarter is poised for one of the biggest economic rebounds, with estimates around 30%, depending on the impact of stimulus programs that have […]

Private Credit: What Recession?

We mentioned last week the SuperReturn North America Virtual conference, where we heard participants on the pandemic’s impact on private credit terms, structures and portfolio performance. But what about new business? A lot depends on managers’ strategies. Institutional investors had expected a downturn for a while. Significant capital was raised to take advantage of fall-out […]

Post-COVID Private Credit: Leverage & Pricing

A private credit practitioner would have found no better place to spend the week than at the SuperReturn North America Virtual conference. As chair of Day One, and on three lender panels your correspondent had a front row seat listening to GPs and LPs describe how they were dealing with the effects of COVID-19 on […]

Private Credit Trends Today

While public markets appear to be headed to more choppiness this fall, private markets are just gearing up. We suspect the same worries bedeviling liquid markets are supporting M&A. As a seller, why not cash in your chips today, rather than risk a reduction in your after-tax proceeds tomorrow? Financings are being issued at a […]

Private Credit – Better than Ever

Over the past five months, we’ve examined the impact of COVID-19 on the economy and the markets and interviewed top private equity and investment banking partners on deal making in the U.S. What’s largely lost in media reporting is the dramatic turn in private credit. This asset class emerged from Great Recession to become one […]

COVID: Industry Winners and Losers

Investors are asking, what is the “new normal” for businesses? Unfortunately, as a recent Accenture study notes, “normal isn’t available to us anymore.” In the absence of normality, sponsors and lenders are adapting. “We historically focused on six sectors,” one PE partner told us. “COVID swept two away, leaving four. We’re still getting books on […]

The Post-COVID M&A Financing Process

Financing companies in a COVID environment is as challenging as buying and selling them. Top M&A bankers gave us their list of do’s and don’ts. “There are a lot of twists and turns today,” a mid-West MD told us. “You may think the company you’re trying to sell is operating at pre-COVID levels, but what […]

The Post-COVID M&A Sale Process

As deal makers have adjusted to the new normal of business openings (and re-closings) across the country, conversations are now back to M&A processes. How has the pandemic affected deal timelines? “The time to market will inevitably elongate,” one top middle market banker told us. “Buyers and sellers will need more preparation to assess the […]

COVID-19 and M&A Activity

This week we kick off a new series on COVID-impacted deal flow, with a look “upriver.” How has M&A activity been affected, and what should deal makers expect for the “new normal?” We interviewed top middle market investment banks about their experiences so far in this coronavirus season. The beginning of the crisis caught advisory […]