As many middle market businesses struggle to stay above water, private equity firms are well-positioned to provide a lifeline. They have been preparing for this moment for years, heeding a lesson from the Great Recession that they need capital to deploy when the valuations are low and struggling companies are receptive to investment. Indeed, the ... READ MORE >
Financial Services
Comprising everything from private equity firms to family offices, financiers are active participants in the middle market. They provide the vital capital infusions needed to take growth companies to the next level.
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. The SBA released additional guidance for the program on April 24, settling the questions of some private equity and hedge fund managers who ... READ MORE >
For private equity firms, valuations become a difficult question
Many RSM clients with portfolio companies have recently completed their year-end audits and are now preparing to do their first-quarter valuations. But while that has been a relatively straightforward proposition in recent years, it is anything but this year. How do private equity firms determine the fair value of their holdings when those values seem to ... READ MORE >
How private equity firms might qualify for SBA financing
In early 2012, The Atlantic published an article, “Private Equity Is a Force for Good” that gave a clear-eyed look at the industry and its impact on the economy.. Eight years later, the private equity industry, with billions in capital ready to put to work, is in a position to help the economy recover from the coronavirus pandemic by investing in growing ... READ MORE >
How business development companies can weather the coronavirus downturn
The coronavirus pandemic has taken a severe toll on the American economy, with small and midsize businesses being hit especially hard. It’s not surprising, then, that 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 ... READ MORE >
What lenders know about the Main Street Lending Program, and the questions that remain
On April 9, the Federal Reserve announced the Main Street Lending Program, the latest in a series of liquidity commitments to bolster the economy during the coronavirus pandemic, particularly for small and medium-size businesses The program is backstopped by $75 billion in equity investment that will provide up to $600 billion in liquidity commitments by ... READ MORE >
In the confusion of a pandemic, alternative data can show the way
Suppose you could turn back time and re-evaluate your company’s response to the coronavirus. There’s no crystal ball, but you have something that offers great insight – alternative data. How would you use it and what would you do differently? Which data sources would you trust the most and how would you reformulate your company’s response? Instead of ... READ MORE >
How banks can help their customers navigate the coronavirus shock
As banks begin to help their small and midsize commercial borrowers obtain financing under the CARES Act, the reality is setting in just how severely the economy is being disrupted by the coronavirus. Even though the CARES Act provides a stimulus package of $2.39 trillion, or 11.4% of gross domestic product -- along with a relaxing of rules ... READ MORE >
How family offices and their portfolio companies might qualify for loans under the CARES Act
The CARES Act is a $2.2 trillion fiscal policy response to help American citizens and businesses struggling with the severe impact from the coronavirus pandemic. The law created several important programs to help provide liquidity to small and midsize businesses to cover payroll or other business expenses. The programs all have a different purpose. To ... READ MORE >
How to become a qualified lender under the Paycheck Protection Program
(Note: this article was originally published on April 1, and was most recently updated on May 5.) The federal government recently approved the CARES Act, a $2.2 trillion fiscal stimulus meant to address the economic damage of the coronavirus. Included in that package is the Paycheck Protection Program, an ambitious new $349 billion loan program designed ... READ MORE >