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Privateequity is an investment asset class that has gained significant prominence and popularity in recent decades. However, privateequity can seem complex and intimidating to beginners who are unfamiliar with its fundamentals. Privateequity firms also invest in distressed debt or provide privatedebt financing.
By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success Raising privateequity funds is seen as the holy grail for businesses who want to grow quickly, simply because the strength of capital opens the door for rapid growth.
Even though we’ve covered industry groups vs. product groups and teams such as M&A , ECM , DCM , and Leveraged Finance , we continue to get questions about capitalmarkets vs. investment banking. The questions usually go like this: Are capitalmarkets teams (ECM, DCM, and LevFin) “real” investment banking?
I was there through 2015, then Bank of America, before I joined Conversant Capital in early 2021. He envisioned Conversant as a platform to capitalise on real estate opportunities across the liquidity spectrum in both public and private and up and down the capital structure including equity and credit.
Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , privateequity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. The size and importance of these groups vary by company stage and industry.
Project Finance Definition: “Project Finance” refers to acquisitions, debt/equity financings, and new developments of capital-intensive infrastructure assets that provide essential utilities and services. However, many people also use the term more broadly to refer to equity, debt, and advisory for infrastructure assets.
The basic difference is that the international bulge bracket banks tend to be stronger in M&A advisory and weaker in equity and debtcapitalmarkets. Among the elite boutiques , Evercore has the strongest presence in Singapore, and Rothschild also works on many deals, mostly in the middle-market space.
Firms have lowered hold sizes and increased loan prices as they lean toward smaller transactions, team up with other lenders on deals, shy away from unfunded debt and turn up scrutiny on business performance. Borrowers typically don’t have to pay interest on unfunded debt until they tap those credit lines.
Bulge Bracket Bank Definition: The “bulge brackets” are the largest global banks that operate in all regions and offer all services – M&A, equity, debt, and others – to clients; they work on the biggest deals (usually $1 billion+) and have divisions for sales & trading , equity research , wealth management , corporate banking , and more.
Intrepid’s Supply Chain & Logistics Group will offer M&A advisory and other capitalmarkets support to middle-market companies offering transportation & logistics services and a diverse range of mission-critical supply chain solutions. He will be based in Intrepid’s Charlotte office.
Example of Merchant Banking In 2021, merchant bank Avendus Capital helped the Indian company Piramal Enterprises acquire the debt-ridden assets of Dewan Housing Finance Corporation (DHFL) for ₹34,250 crore ($4.4 What is the role of merchant banks in the capitalmarkets? What are the advantages of using merchant banks?
The impact of higher interest rates is felt in the form of debt servicing ratios. This is the amount of debt that a business can take on in order to finance an acquisition. When interest rates increase, banks are less likely to provide financing as the debt servicing ratio becomes more difficult to meet.
This article focuses on how medical practices are valued by privateequity-backed groups, and to an extent, health systems and other strategic acquirers. Physician practices are almost always valued on a multiple of EBITDA basis in transactions with privateequity groups or similar buyers. We explore each in turn below.
Written by Claire McDonnell IT-focused managed service providers (MSPs) appear to be an ideal investment pick for private credit lenders and privateequity sponsors alike. A flurry of activity in this space, including recapitalizations and repricing, may be around the corner, market participants say.
Partially, it’s an issue of accessibility: Everyone understands what happens to the stock price if a company beats earnings… …but few people understand what it means if a company is set to violate a debt covenant on page 214 of its credit agreement. the appropriate debt vs. equity mix, and additional capital needs over the next few quarters.
He then worked for what are called bulge bracket investment banks, mostly in the capitalmarket space. Castle Placement specializes in raising privateequity and debtcapital for clients. This prompted Richard to apply to law school and he graduated from law school while working at the investment bank.
People have argued for years that equity deals “dominate” IB activity in India, but this is a bit of a stretch if you look at the fees by product type: Deals themselves are diversified across different sectors. Some banks have maintained more of a capitalmarkets team and flown in M&A MDs “as needed” to pitch for and execute deals.
Investment Banking Activities Investment banks have a dual role; they provide advisory services to corporations and governments and raise capital by issuing and selling securities in the capitalmarkets. When Facebook went public in 2012, it needed an investment bank to handle the Initial Public Offering (IPO).
These individuals have ambitions for growth and are driven by business expansion, capitalization, marketing, and other related factors. Finally, the guests discuss the current market trends in privateequity and capital raising.
was debt financing adviser. Brookfield Infrastructure turned to BMO CapitalMarkets Corp. The buyers anticipated the transaction would close by the end of 2023, subject to customary regulatory approvals. Goldman, Sachs & Co. and Guggenheim Securities LLC provided financial advice to Compass Datacenters and RedBird.
The Volcker Rule also imposes restrictions on banks’ investments in hedge funds and privateequity funds, as a preventative to conflicts of interest and to ensure that banks prioritise the interests of their clients and shareholders.
However, deal activity fizzled in the second half of 2022, as high inflation, aggressive anti-inflation monetary policies, geopolitical instability, assertive antitrust regulators and tightening financing markets depressed target valuations, reduced strategic acquirer confidence and sidelined privateequity sponsor buyers.
Summary of: What Buyers Are Looking for in AI and SaaS Company Acquisitions in 2025 As we move deeper into 2025, the M&A landscape for AI and SaaS companies continues to evolve shaped by macroeconomic pressures, shifting capitalmarkets, and the accelerating integration of artificial intelligence across enterprise software.
Additionally, for those looking to expand rather than exit, securing the right capital and investment partners can help fuel growth while maintaining control over their business. They also discuss why many shop owners overlook key financial details, such as fair market rent, and how proper planning can prevent costly mistakes.
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