Last week we began our series on acquisitions by platform companies of private equity sponsors (“add-ons”) by examining the various roles they play in enhancing value of the underlying businesses. This week we take a closer look at how different sponsors view and implement this strategy. For many firms, it starts with management. “For us,”…
Sponsored acquisition volume for platform companies has averaged less than $2 billion for past five quarters
Secondary Buyouts Still a Primary Route for PE Sellers
335 secondary buyouts have been closed through the end of September, putting the year on pace to fall short of 2014’s tally of 482 but still third-highest of the decade. Given the impact of outliers, this year’s total secondary buyout value may not impress as much as much as those of 2007 or 2015, but it is still quite considerable. In short, private equity sellers are still utilizing fellow sponsors as an exit route nearly as avidly as they were in the past two years...
This week we continue our conversation with Tod Trabocco, Managing Director at Cambridge Associates LLC. Cambridge is a leading investment advisor to foundations, endowments, private wealth, and corporations worldwide. Second of two parts – View part one The Lead Left: With all the funds in the market what can private credit funds do to differentiate themselves? Tod…
Europe-Focused Private Debt Fundraising
The Europe-focused private debt industry has enjoyed substantial fundraising success in recent years and many countries within the region have seen heightened alternative lending activity in the last decade. However, a notable decline in direct lending in 2016 YTD has contributed to a wider slowdown in fundraising activity focused on Europe throughout the year...
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Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Credit investors, whether in cash or synthetics, often welcome corporate restructurings by distressed firms. Job cuts, rationalisation of operations and, in particular, asset sales are usually regarded as bondholder friendly actions.
But this 'wasnt the reaction when Banca Monte dei Paschi di Siena (MPS) announced plans to restructure its ailing business. The Italian bank said that it would reduce jobs by 2,500 – cutting 10% of its staff costs - and close 500 of its 2,000 branches over the next three years. MPS also declared that it would sell its payments processing unit for €520 million...
Pricing soars on oil and gas borrowing base revolvers
After collapsing to a 10-year low of less than $30 in January, oil prices are now in the $50 per barrel range. While prices might have stabilized, the industry continues to suffer severe consequences. Defaults have escalated and recovery rates are down significantly from their historical levels. According to Moody's, loans that are backed by reserves for exploration and production companies have fared better than other debt types...