This week we continue our conversation with Eric Lloyd, the head of Global Private Finance for Babson Capital Management. Babson is one of the world’s leading asset management firms with investment teams on four continents managing over $243 billion in assets for clients in more than 20 countries around the world. Second of two parts – View part one
The Lead Left: Do you do more lead transactions, or participations?
Eric Lloyd: It moves around quarter-to-quarter. We look first for attractive investments. We try not to let ego get in the way. We do our own due diligence and carefully review all the documentation. We’ve led over half of all our transactions, but if we don’t lead, we’re ok with that also as long as we are doing our own direct due diligence.
PE Interest in US Lower Middle Market Slumps Temporarily
After trending upward for over a year, private equity dealmaking in the US lower middle market (defined as transactions sized between $25 million and $100 million) fell sharply between 1Q and 2Q 2016. Granted, there were fluctuations in the upward trend, but 1Q recorded not only the highest spike in PE activity in the US
Distressed Private Equity Excels in PrEQIn Performance Index
The PrEQIn Index captures the returns earned by investors, on average, in their private equity portfolios, based on the actual amount of money invested and rebased to a chosen point in time. This makes comparisons possible between different strategies and also with the S&P 500.
Last week’s failed Turkish coup, and the resulting crackdown, has spooked holders of Turkey’s dollar denominated government bonds. Gauged by Turkey’s CDS spread, the market’s perceptions of the country’s credit risk has jumped by more than a quarter from its close on Thursday. Turkey’s spreads hit 290bps on July 21, the widest level since February.
The majority of the recent widening has happened since Monday’s close, which shows that the market is equally worried