Search results
Results from the WOW.Com Content Network
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.
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 ...
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.
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 ...
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 bond market (also debt market or credit market) is a financial market in which participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on for public and private expenditures. The bond market has ...
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 ...
A vulture fund is a hedge fund or private-equity fund that invests in debt considered to be very weak or in default, known as distressed debt. [2] Investors in the fund profit by buying debt at a discounted price on a secondary market and then using numerous methods to sell the debt for more than the purchasing price.