Search results
Results from the WOW.Com Content Network
Private credit funds and business development companies (BDCs) are positioning their portfolios to deal with a potential economic downturn, which will be the first real test for a market that has ...
Lenders are generally asset management or private debt fund manager firms. Direct lending funds use leverage, but generally less than banks or collateralized debt obligation funds (CDO/CLO). [1] Private Debt primarily focuses on investing at the top of the capital structure, primarily in senior, secured first lien debt.
In addition to private funds, much of the capital for private debt comes from business development companies (BDCs). BDCs were created by Congress in 1980 as closed-end funds regulated under the Investment Company Act of 1940 to provide small and growing companies access to capital and to enable private equity funds to access public capital markets.
Up to a certain point, the use of debt (such as bonds or bank loans) in a company's capital structure is beneficial. When debt is a portion of a firm's capital structure, it permits the company to achieve greater earnings per share than would be possible by issuing equity. This is because the interest paid by the firm on the debt is tax-deductible.
H.I.G.’s equity funds invest in management buyouts, recapitalizations, corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. The firm's debt funds invest in senior, unitranche , and junior debt financing to companies across the size spectrum, both on a primary (direct origination) and ...
The business line focuses on providing senior, one-stop, and second lien debt to U.S. middle market companies, typically controlled by private equity firms. [ 3 ] [ 5 ] Golub Capital can hold over $400 million in each middle market lending deal, [ 24 ] and the team can also underwrite and syndicate senior credit facilities and a proprietary ...
Lower yields on new bonds: You’re receiving more money from higher bond prices and interest at first, but that can potentially be offset over time as those bonds mature and newer, lower-rate ...
Such debt is referred to as 'subordinate', because the debt providers (the lenders) have subordinate status in relationship to the normal debt. Subordinated debt has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy, and ranks below: the liquidator, government tax authorities and senior debt holders in the ...