We were sad to hear of Coca-Cola’s decision last week to discontinue Tab by year end. Launched in 1963 Tab was a pop culture icon, appearing in Back to the Future and Ghostbusters. But competition from Diet Coke spelled its demise. It takes superior management to keep brands vital. Remember Scooter Pies, Quisp, or FudgeTown […]
The journal Astrobiology has highlighted 24 planets that could possibly sustain life. Criteria for “superhabitability” include stars younger than the Sun and atmospheres with warmth and moisture greater than Earth. All these planets are over 100 light years away – not ideal for COVID getaways. But for those who don’t mind long trips with the […]
“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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]