As steady flows of management fees and profits interest start to attenuate, liquidity becomes more important to prevent the family office’s operations from slipping. As the economy slows and uncertainties linger, family offices that provide investment management services need to move beyond the Paycheck Protection Program and focus on the new Main Street Lending Program. … READ MORE >
Financial services
As demand for commercial loans rises, so do underwriting standards
The increase in demand is consistent with the latest results from the RSM Middle Market Business Index, which indicate that an increasing number of respondents either sought special financing during the survey period or are planning to seek special financing over the next six months. … READ MORE >
Global M&A nosedives, and what comes next is still in question
Global mergers and acquisitions plunged in April as companies worked through business challenges resulting from the coronavirus. As parts of the world begin to reopen their economies, questions remain on how bad the aftertaste will be for corporate deal making. … READ MORE >
How business development companies are navigating the economic shock
As business development companies reel from the effects of the coronavirus outbreak, the valuations of their portfolio companies have dropped as the risk of default has grown amid a liquidity crunch. But there are steps they can take to manage the significant shock to the economy. … READ MORE >
As private equity firms prepare to deploy cash, a backlash looms
As many middle market businesses struggle to stay above water, private equity firms are well-positioned to provide a lifeline. But there is a looming threat to the way the industry operates, and it is coming from the political sphere. … READ MORE >
As SBA accepts new applications for Paycheck Protection Program, private equity is not eligible
As the Small Business Administration began accepting applications on Monday for loans under the second round of financing for the Paycheck Protection Program, private equity firms and hedge funds will not be eligible. … READ MORE >
For private equity firms, valuations become a difficult question
How do private equity firms determine the fair value of their holdings when those values seem to change by the day, or even the hour, amid the economic havoc caused by the coronavirus? … READ MORE >
How private equity firms might qualify for SBA financing
The private equity industry is in a position to help the economy recover from the coronavirus pandemic by investing in growing companies, helping them add employees, increasing capacity with their supply chains, investing in critical infrastructure systems and improving the communities they serve. … READ MORE >
How business development companies can weather the coronavirus downturn
The stock prices of business development companies, which invest in small and midsize companies along with distressed enterprises, have experienced the sharpest and fastest decline since the financial crisis of 2008-9. Still, BDCs may ultimately have a better chance of weathering the storm without suffering the depression-level shocks that seem to have been priced into their stock prices. … READ MORE >
What lenders know about the Main Street Lending Program, and the questions that remain
Within moments of the announcement of the Main Street Lending Program, many lenders began to pour through the term sheets published by the Federal Reserve. While some answers were provided, further details are needed. Here is what we know. … READ MORE >