This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Traditional debt financing was expensive and scarce, expectations on valuations were tricky to navigate, portfolio companies required additional attention, fundraising was not easy and regulators continued to scale up their scrutiny of the industry and its transactions.
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.
The Parking Spot is a portfolio company of Green Courte Partners. The post The Parking Spot snags $750m debt financing from Carlyle appeared first on PE Hub.
"We acknowledge there are positive developments including: (1) a new hyperscaler customer; (2) expansion on OpenAI agreement; and (3) debt raise at lower cost of capital," analyst Brad Sills wrote in a note to clients.
Leveraged buyouts involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing, using the acquired company’s assets as collateral to secure debt financing. Private equity firms also invest in distressed debt or provide private debt financing.
What is a Collateralized Debt Obligation? Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work? CDOs provide investors with a diversified portfolio of debt instruments across different risk levels. read more , etc.
Proposed acquisition of Acer for $15M in Zevra stock plus Contingent Value Rights (CVRs) and Zevra’s purchase of Acer’s secured debt in capital efficient structure
(OTCQB: AIUG), a pioneering force in artificial intelligence innovation, is thrilled to announce the acquisition of Resolve Debt, a powerful AI-driven platform specializing in debt collection technology and accounts receivable automation.
More advisors also embraced private debt, with about 19% of participants saying they're turning to this asset class, compared to 12.5% "The objective of alternatives is to reduce overall portfolio volatility to create more consistency in returns so that we get better compounding," he said.
In particular, new guidelines from the FDIC and Federal Reserve (among other governmental agencies) made it more difficult for banks to underwrite financings that resulted in debt-to-EBITDA ratios in excess of 6.0x. This capital is released once investors buy the debt off the banks’ balance sheets.
For example, if a private equity firm invested $100M into a portfolio company with a 20% expected rate of return, this return would not actually be 20% if the calculations were not adjusted for inflation. Inflation can also have an impact on the cost of debt required to finance an investment.
Value creation is often the primary focus in the investment world, where the goal is to paint a picture of prosperity and success for portfolio companies. Tech Debt: It’s the silent killer. However, in this pursuit, we often overlook the other side of the coin – value destruction. Enter Value Destruction.
We are all painfully aware of the impact the coronavirus pandemic has had on our investment and retirement portfolios. What is generally less understood is the impact of the pandemic on the debt markets. You felt this in your investment and retirement accounts, and the debt markets were dramatically affected as well. to 10.0%.
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.
Based in West Palm Beach, Florida, Catera will continue to help lead the investment team and focus on structuring, negotiating and advising portfolio companies on debt and equity financings. The post Siris promotes Catera to partner appeared first on PE Hub.
For example, if a private equity firm invested $100M into a portfolio company with a 20% expected rate of return, this return would not actually be 20% if the calculations were not adjusted for inflation. Inflation can also have an impact on the cost of debt required to finance an investment.
Venture Debt is less expensive than equity … in the long run Perhaps the greatest benefit of venture lending is that it injects money into a business without heavily diluting the equity stake of the entrepreneur or venture capital investors. Fees overload – The true cost of debt is often increased by the inclusion of numerous fees.
“As corporate debt issuance continues to increase across sectors, market participants are looking for tools to help them navigate growing credit exposure,” said Agha Mirza , global head of rates and OTC products at CME Group.
per share, and assume approximately $133 million in net debt ( 2 ). per share, and assume approximately $133 million in net debt ( 2 ). Under the terms of the Merger Agreement, Amplify will issue Juniper approximately 26.7 million shares of Amplify common stock ( 1) , par value $0.01
The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.
billion debt, coupled with high capital expenditures for international galleries, strains cash flow in a rising-rate environment. Net debt has roughly doubled over the past five years, and the $30.4 expected) and a 44% stock drop underscore tariff sensitivity, with Q1 2025 guidance cut 20% due to cost pressures. RH's $3.9
Debt financing is much more common, and the GE firm is often the first institutional investor. Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies. They do not use debt since they only make minority-stake investments. What accounts for the difference?
"The bond market is the 'adult in the room', saying 'Houston we have a problem', as it relates to deficits and debt levels. "I think it's a really helpful and important signal for all investors," Agati said. Of course, we had this big package come through, the question is how are we going to pay for it."
It has approximately £351 million in assets under management and manages two strategies: global high yield, launched in 2006, and emerging market corporate debt, launched in 2010.
billion, including the assumption of Sterling’s outstanding debt, the acquisition combines industry leading platforms and innovative solutions to deliver an enhanced customer experience while expanding and diversifying First Advantage’s vertical and geographic exposure, creating a more well-balanced portfolio. Valued at $2.2
Private Equity Value Creation Definition: The PE value creation team, also known as the operations, portfolio operations, or portfolio resources team, aims to make private equity firms’ portfolio companies more valuable by improving their revenue and profit margins. Why is PE Value Creation Suddenly “Hot”?
Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm , as with a typical transaction. This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels.
One option, DSCR (Debt Service Coverage Ratio) loans, serves as a valuable resource for building a property portfolio. 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.
24, 2023 (GLOBE NEWSWIRE) -- CNL Strategic Capital, LLC acquired a majority equity stake and made a concurrent debt investment in Sill Public Adjusters (Sill) in partnership with Sill’s management. This is the 13th company in CNL Strategic Capital’s portfolio. Orlando, Fla.,
FTSE Russell will explore incorporating Tradeweb pricing into FTSE fixed income indices over time, initially with FTSE World Government Bond Index (WGBI), an index consisting of sovereign debt from more than 20 countries and denominated in a selection of currencies.
Specifically, the transaction will see Impax AM add Absalon’s global high yield and emerging market corporate debt strategies to its fixed income range. Copenhagen-based Absalon was previously part of the Formuepleje Group and serves both European institutional investors and Danish high net worth individuals.
Acquiring companies need to understand the target’s digital capabilities, potential technology debts, and how well their systems integrate with their own. Actionable Insight: Evaluate the target company’s R&D initiatives and intellectual property portfolio.
Portfolio Management Merchant banking companies provide portfolio management services to high -net-worth individuals and corporate investors. These services include a selection of securities, portfolio monitoring and review, advice on the rationalization of portfolios, and tax planning.
Naturally, proficiency in Excel is of the utmost importance, but ensuring you understand the right financial model is equally important; be sure to practice your paper LBO and Excel debt-focused models through courses to give yourself an edge. Understand the Firm Research the private equity firm thoroughly.
Firms have lowered hold sizes and increased loan prices as they lean toward smaller transactions, team up with other lenders on deals, shy away from unfunded debt and turn up scrutiny on business performance. Borrowers typically don’t have to pay interest on unfunded debt until they tap those credit lines.
Diversification: Diversifying your business portfolio can be a prudent goal. In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control.
Project Finance Definition: “Project Finance” refers to acquisitions, debt/equity financings, and new developments of capital-intensive infrastructure assets that provide essential utilities and services. However, many people also use the term more broadly to refer to equity, debt, and advisory for infrastructure assets.
For buyers, who rely heavily on debt financing to fund acquisitions, a rate cut—especially one larger than expected—creates immediate opportunities. Here’s how: Lower Cost of Debt Private equity firms typically use leverage (borrowed capital) to finance a significant portion of their acquisitions.
The business world is dynamic, and growth often requires expanding one’s portfolio through strategic acquisitions. If you have substantial cash reserves, you may opt for an all-cash deal, reducing debt burden and interest costs. Debt Financing Debt financing involves borrowing money to fund the acquisition.
This means you’re still responsible for any outstanding debts, lawsuits, or contracts that weren’t part of the sale. Assets and liabilities transfer automatically: Since the buyer now owns the business itself, they also assume its debts, obligations, and any pending issues.
Inflation, supply chain disruptions and the rising cost of debt stopped consumer companies in their tracks last year. portfolio company Birkenstock GmbH & Co. Direct-to-consumer businesses, darlings of the investor community in 2021, saw their techlike valuations plummet. KG having an underwhelming start.
We’re constantly monitoring our portfolio companies’ ability to pass on price increases, particularly as consumers’ wallets come under immense pressure.” – Portfolio Manager, private credit fund “There’s no such thing as a free lunch. The Fed Funds Rate sits at 4%, and SOFR is expected to peak at 4.8% in Q2 2023.
Additionally, liquidity is important for governments because it gives them access to debt markets to sell securities to fund deficits. Hedge funds often use a variety of investment strategies and invest across multiple asset classes, which can help diversify their portfolio and reduce risk.
We organize all of the trending information in your field so you don't have to. Join 38,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content