Ropes & Gray LLP’s Post

In a muted exit environment, some firms have taken on NAV loans to bring additional capital to long-held portfolio companies. The LP community is split on the benefits or pitfalls of the strategy. Read more and let us know your thoughts on this strategy: https://bit.ly/3Taf8wR #MiddleMarket #Growth #Network #Networking #Deals #Dealmaking #Dealmakers #InvestmentBank #InvestmentBanking #Invest #PrivateEquity #PE #Advisors #Community

Curious to hear thoughts from others in my network on the topic of NAV loans as showcased in this post by Middle Market Growth Magazine. I remain a fan of the opinion expressed by Holden Spaht as reflected in the link below: https://lnkd.in/gAcFqJgW And further, as with many things today, "it depends" will be a fitting response to many questions tied to objective analysis of C&I finance to garner the support of a lender in quarters to come, IMO. In 2024, prudent C&I Lending will require understanding of several circumstantial elements, case by case, no doubt! #NAV #PE #LP #middlemarket #commercialfinance #restructure #recapitalization #rewind #capitalcall

Deal news: Goldman Sachs and Sixth Street private credit arms in talk to provide $655m acquisition financing for buyout sponsor H.I.G. Capital Led by Goldman Sachs Asset Management and Sixth Street, the financing package consists of $435m term loan, $160m capex facility and $60m RCF for H.I.G’s potential acquisition of USA DeBusk, a Taxas based mechanical and industrial cleaning company, reports Bloomberg. The deal is priced at 525bps over SOFR, c.1% less than the seller’s existing debt. In the ever growing private credit market it’s increasingly common to see deals fully led by private lenders with no bank loans involved. This type of deal could potentially go through faster due to risk appetite and availability of capital. Follow for the latest deal news in private credit and alternative investment. #privatecredit #privateequity #investmentbanking #goldmansachs #investing

Another potential signal of M&A activity in 2024, reported by the WSJ, this time from the debt-financing persective: "Nearly 90% of the over $350 billion of leveraged loans priced in 2024 have been opportunistic, for things like refinancing or repricing, data from LevFin Insights shows." "In March, average spreads on new loans from issuers rated single-B were roughly 1.5 percentage points lower than they were at the same time last year, according to LevFin Insights." "This is a sign that debt investors are hungry to buy and aren’t overly worried about credit risk, reflecting the same strong economic data that may keep interest rates elevated." "With more of their existing deals refinanced, private-equity firms might now be in a position to start to deploy more capital into new deals." https://lnkd.in/dU8AwTWQ

Bear Down Brokerage is thrilled to have developed a partnership with U.S. Capital Group to provide our clients and client prospects with financing options and liquidity for their various needs in the debt, equity, credit line, real estate development, working capital and refinancing areas. Given today's high-interest rate and tight capital environment, this can greatly benefit many in the lower and middle markets who are finding it incredibly difficult to access capital in traditional avenues. Please call us for a discussion about what is possible. Doug Hall 949-254-0389 or Warren Morten 949-579-2760 #beardownbrokerage #lowermiddlemarkets #capital #liquidity #uscapitalgroup #doughall #warrenmorten #debtfinancing #equityfinancing

🌤 In 2023, private equity firms weathered macroeconomic storms, but brighter skies are on the horizon. 🌟 Asset sale negotiations faced hurdles due to valuation gaps, leading to a dip in spending, notably in large-cap buyouts. However, Q4 saw a turnaround, with the Adevinta buyout and Permira's €950m GGW takeover shining through. 📈 LBO activity averaged at 33.7% of deals over the year, but climbed to 41% in the final quarter. 🔍 Dive into the details with insights from 9fin's Joe Lomas and Jonathan Klonowski. Read more here — https://lnkd.in/exm9jhBE

It's time for another 9Questions! 🎙️ Meet this week's guest — Adrienne Butler, co-head of Barings US high yield and head of US CLO funds. Adrienne discussed when the sourcing of triple-A investors is going to ease and touched upon the reinvestment crunch the CLO market is grappling with, how to manage low recovery rates from loan defaults and more! 👉 Read now — https://lnkd.in/eXfVZ2Ya #clo #structuredcredit #leveragedfinance #debtcapitalmarkets #investors #finance

Improved #middlemarket #valuations, the likelyhood of lower #interestrates and with creative #exit solutions, these funds are performing and are actively doing #deals #privateequity #fundinvesting #leverage #carveouts #continuationfunds

Moody's warns that recent LBO bond covenants are increasing financial risks for investors. In this Bloomberg Law article, Maria Clara Cobo details how private equity firms are gaining more flexibility at the expense of bondholder protections. Stay informed on the evolving dynamics of leveraged buyouts. https://lnkd.in/ekX_h3Sz #LBO #BuyOuts

How can businesses boost their chances of success in a tough refinancing market? Despite the uncertainty of the current market, there is still liquidity available and potential options for companies looking to raise or refinance facilities. But, knowing where to start can be difficult. In our article we highlight four key priorities to help businesses make the most of the financing options available. Find out more: https://pwc.to/49iUFLD #Refinancing #Restructuring #ActNow