article thumbnail

Why PE Investors Care About Interest Rates

OfficeHours

For the average person, rising interest rates are not ideal for those with significant amounts of debt, those looking to purchase a home with a mortgage, or many other use cases. Once the cash available is used to service the debt, whatever is left over is paid as dividends and used to calculate returns for private equity investors and LPs.

Investors 130
article thumbnail

10-20-2023 Newsletter: Why PE Investors Care About Inflation

OfficeHours

For private equity investors who have been monitoring the situation around inflation for the last few months to a year, many have been disappointed to see the slow trajectory with which inflation has been coming down from highs. Inflation can also have an impact on the cost of debt required to finance an investment.

Investors 130
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why PE Investors Care About Inflation

OfficeHours

For private equity investors who have been monitoring the situation around inflation for the last few months to a year, many have been disappointed to see the slow trajectory with which inflation has been coming down from highs. Inflation can also have an impact on the cost of debt required to finance an investment.

Investors 100
article thumbnail

Collateralized Debt Obligation (CDO)

Wall Street Mojo

What is a Collateralized Debt Obligation? It happens when capital borrowers like banks, big companies, and other financial institutions lose capital provider's trust like depositors, investors, and capital markets. Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work?

Debt 52
article thumbnail

10-23-2023 Newsletter: Why Take-Private Dealmaking Remains Attractive for PE Investors

OfficeHours

However, for private equity investors, this uncertainty represents a unique opportunity to take advantage of investment opportunities in public markets. According to the Institutional Investor, 81% of value in all transactions in 2023 so far were take-private deals (compared to 20% seen in a typical year).

Investors 130
article thumbnail

Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Mergers and Inquisitions

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits.

Debt 96
article thumbnail

DSCR Loans: Navigating the Do’s and Don’ts for Real Estate Investors

Global Banking & Finance

DSCR Loans: Navigating the Do’s and Don’ts for Real Estate Investors Real estate investment offers a world of opportunities, and understanding how to finance these ventures is key. One option, DSCR (Debt Service Coverage Ratio) loans, serves as a valuable resource for building a property portfolio.