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The Rise of Private Credit & Its Impact on Acquisition Dynamics

Benton Lewis — Mon, 18 Sep 2023 13:47:20 +0000

Private credit is all the rage these days, grabbing headlines for its rapid growth as an asset class in what industry leaders have called a “golden moment” for the space. Commentators have rightly focused on the myriad advantages of direct lending solutions for borrowers under credit facilities, but the growing prominence of privately placed financings […]

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Leveraged Finance Market Update

Andrew J. Colao — Mon, 17 Jul 2023 16:02:27 +0000

It has been a cruel summer, not just for Taylor Swift fans navigating Ticketmaster, but also for the leveraged finance market, as borrowers and lenders alike faced a challenging economic climate and tight credit conditions. However, cooling inflation and signs of a reopening of the syndicated loan market suggest we may soon be out of […]

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SEC Settles Enforcement Action Regarding Investment Adviser’s Improper Application and Disclosure of Permanent Impairment Policy

David E. Wohl — Mon, 26 Jun 2023 14:14:12 +0000

On June 20, 2023, the SEC settled[1] charges against an investment adviser to private funds in connection with the adviser’s (i) charging excess management fees due to inaccurate application of its permanent impairment policy and (ii) failing to disclose a conflict of interest to investors relating to such policy and its fee calculations. The SEC’s […]

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SEC Issues Risk Alert on Broadened Focus for Marketing Rule Examinations

David E. Wohl — Mon, 12 Jun 2023 19:36:05 +0000

On June 8, 2023, the SEC’s Division of Examinations (Division) issued a risk alert[1] outlining its broadened areas of focus for examinations of registered investment advisers concerning amended Rule 206(4)-1 (Marketing Rule) under the Investment Advisers Act of 1940 (Advisers Act). Specifically, the alert noted that the Division is conducting focused examinations, as well as […]

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SEC Adopts Amendments to Form PF

David E. Wohl — Tue, 09 May 2023 12:51:16 +0000

On May 3, 2023, the SEC adopted significant amendments to Form PF, the confidential reporting form completed by registered private fund advisers for use by the SEC and the Financial Stability Oversight Council (the FSOC) to monitor systemic risks to the US financial system.[1] The amendments will affect private fund advisers in three key ways: […]

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Leveraged Finance Market Update

Patrick Wildes — Wed, 15 Feb 2023 20:39:17 +0000

The proverbial “Dry January” was not entirely dry in the U.S. leveraged loan market where market participants remain thirsty for opportunities to deploy available capital. While lackluster, activity in the U.S. leveraged loan market in the fourth quarter of 2022 and January 2023 was bolstered by a strong private credit market and record-breaking amend-and-extend activity. […]

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Keeping the IPO Door Open – What Every PE Portfolio Company Should be Doing Now to Maintain Optionality for an IPO in the Future

Alexander D. Lynch — Mon, 09 Jan 2023 21:13:40 +0000

In 2022, many portfolio companies delayed their IPOs and will look to either go public or be acquired in 2023 or 2024 as markets improve. While many sponsors will exit their investment through a sale to a strategic buyer or another PE firm, there may be periods in the next year or two in which […]

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Leveraged Finance Market Update

Andrew J. Colao — Thu, 01 Dec 2022 13:15:54 +0000

It’s not just the cost of Thanksgiving turkey that increased in 2022. The U.S. leveraged loan market for the majority of 2022 has been shaped by three increases: (A) increased volatility, (B) increased borrowing costs and (C) increased risk-aversion. In this alert, we’ll dive deeper into the impact each of these has had on the […]

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Competing Benchmarks in the Transition from LIBOR

Andrew J. Colao — Mon, 07 Jun 2021 14:19:00 +0000

While significant momentum has built over the last few years around the Secured Overnight Funding Rate (“SOFR”), we have seen other alternative interest rates gain traction in recent months, especially as the initial December 31, 2021 deadline draws nearer. In this post, we provide an overview of SOFR and compare it to some of the […]

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Social Issues Pose Widespread Credit Risk

Andrew J. Colao — Fri, 08 Nov 2019 14:59:19 +0000

In the wake of global protests spanning from London to Hong Kong, Moody’s has released a report detailing the impact that social considerations may have on the credit quality of approximately $78 trillion worth of rated debt across 82 sectors of the global economy. The report groups the risk due to societal considerations that a […]

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