The new era of the supersized loan A recent financing underlines the ever-larger amounts of capital that the biggest private debt managers are now able to deploy. When Ares Management announced a loan to RSK Group, the UK-based environmental and engineering business, earlier this week, most of the attention was focused on the sustainability angle….
Markets prove their resilience Performance is on the up and deals are being done as firms show determination to fight their way through the pandemic. It sounds strange, given the harrowing events of the last 18 months, to be talking about markets surpassing all previous landmarks. But there’s no denying that bullishness is very much…
When going green is not all it seems Investors are not convinced that ESG-friendly loans necessarily force managers to up their game. Private debt, it could be argued, has up to now occupied the back seat when it comes to environmental, social and governance issues. The expectation in sponsored deals has been that private equity…
Driving forward on ESG, but acceleration needed Private debt managers have made considerable progress but, particularly in North America, there is more to be done. Today any private debt manager underplaying the importance of environmental, social and governance issues might expect short shrift from any investor they approached for capital. However, it wasn’t always that…
Private debt warms up in the Middle East Sovereign wealth interest is becoming apparent as one of the world’s nascent debt markets shows signs of growth. As a relatively new asset class, private debt remains heavily undeveloped outside of North America and Europe. For investors looking to diversify outside of these regions and gain emerging…
Germany’s direct lenders make their mark The country’s once-dominant banks have seen their share of the lending market steadily eroded by alternative finance sources. It must have been around four or five years ago. The venue was London and a delegate at Private Debt Investor’s latest Capital Structure Forum was expressing the view that Germany…
Debt finds a foothold in the Middle East The region may be at a nascent stage, but private debt firms are seeing signs for optimism. As a relatively new asset class, private debt remains heavily undeveloped outside of North America and Europe. But some are tipping the Middle East and North Africa to be one…
The distressed opportunity mounts up Leveraged loan defaults have been accelerating, with companies having come under strain during the pandemic. Considering there has been a lot of talk about the delaying of the distressed opportunity as a result of companies being propped up by government support schemes, the figures in the chart above – showing…
The default story may have another twist Aided by support schemes, many businesses have been protected from the worst effects of the pandemic. But what happens when the support comes to an end? “While we are not out of the woods, we have seen a large number of loans return to performing credits, and we…
Timing is key in distressed debt The global pandemic provided another reminder that moving fast when opportunity arises is vital for managers in the space. When covid began spreading swiftly around the world early last year, a key facet of distressed debt investing was reinforced – the importance of timing. As public and private markets…