Changes in stock and high-yield bond valuation levels have diverged since the start of September, a shift after largely tracking each other since the beginning of 2020. Stocks reached a peak in early September and have since returned four straight weeks of decline through the end of last week. Although yields are starting to creep up, which would bring ... 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.
SEC adopts amendments bringing clarity to accredited investors and family offices
(This post has been updated from its original version on Feb. 4, 2020, to reflect the SEC's adoption of amendments to the "accredited investor" definition.) Every four years, the Securities and Exchange Commission is required by the 2010 Dodd-Frank law to modify the rules protecting investors. The original protections were put in place in 1982, but with ... READ MORE >
Hedge funds will be tested as U.S. fundamentals remain frail
Middle market hedge fund managers are coping with a contradiction—as the world unravels due to Covid-19, the S&P 500 is nearing an all-time high. While the markets respond favorably to progress on a vaccine, money managers are looking to a future with a high degree of uncertainty around a possible U.S. recovery amid weak fundamentals. On March 11, the ... READ MORE >
Fintechs helped with the Paycheck Protection Program. Why not the Main Street Lending Program?
What makes a great partnership? There are a number of examples of great partnerships that have worked toward a common goal. In the sports world, think of Michael Jordan and Scottie Pippen or Joe Montana and Jerry Rice. In business, there is the recent success between Apple and Goldman Sachs in launching the Apple Card. As small and medium-size ... READ MORE >
COVID-19 stifles middle market private equity dealmaking
U.S. middle market private equity deal and fundraising activity slowed through the second quarter as the global health pandemic continues to ravage American business. According to PitchBook, the number of closed middle market funds – defined as individual funds with assets under management of $1 billion or less – was only 35 during the second quarter, ... READ MORE >
RSM’s exclusive MMBI survey reveals how the Main Street Lending Program can be improved
Growing uncertainty surrounding another round of fiscal aid in Washington has reignited concerns about the Main Street Lending Program and whether it can help small and midsize organizations find bridge financing as the COVID-19 crisis continues. The program remains woefully undersubscribed. Through August 19, banks participating in the MSLP have ... READ MORE >
Without adjustments, Main Street Lending Program is unlikely to be mainstream
Unlike the strong demand for the Paycheck Protection Program, which saw $350 billion in aid snatched up in the 13 days following its debut, interest in the Main Street Lending Program has been more muted; less than $100 million in aid was requested in the program’s first month, according to data from the Federal Reserve. But that may change, possibly even ... READ MORE >
Is cash no longer king?
Living in London for the past three years, I fully embraced the cashless culture. Paying for meals at an outdoor market, for drinks at the pub or to ride the tube was a fast, secure and seamless process using my phone. While working abroad with businesses of all sizes and in various industries, I also got used to businesses not using checks. But I ... READ MORE >
Businesses already strained by COVID-19 should prepare for hurricane season
The Atlantic hurricane season is already off to a busy start, with six named storms having formed as of early July. And it is likely to get worse. The National Oceanic and Atmospheric Administration predicts a 70% chance that this hurricane season will be worse than normal, with just a 10% chance of being less damaging than normal. Anywhere from 13 to ... READ MORE >
Global M&A remains soft, but that could change as elections approach
Global mergers and acquisitions have had a slower start to 2020 compared to other years as companies continue to work through business challenges resulting from the coronavirus. Through June, the total value of announced deals was $327 billion, according to PitchBook. At that pace, the year would end with $654 billion of annual deal value, an 18% drop ... READ MORE >