lev fin and sponsors....one in the same?

id like to know as well

Levfin is a lot of debt work including corporate loans etc. Sponsors is a coverage group that focuses on Private Equity , Hedge Funds and other 'sponsors'.

Not the same. totally different groups. do a little research.

LF and FSG often get lumped together because FSG tends to rely on LF's execution/product capabilities so much. Here's the best way I can break them both down.

FSG is essentially a coverage group for financial buyers. They operate similar to any other industry group. They may bring buyside ideas to sponsors, pitch different exit options with supporting analysis to sponsor owned companies, etc.

Leveraged finance has one hand in the IBD and one hand on the capital markets. They have a good idea through their friends in DCM and the trading desks about how much paper the market will take and what the pricing will have to be to clear the markets. They can give FSG a good idea of what the realistic pricing is for the amount of debt needed to finance an LBO. Sometimes, when there isn't a whole lot of wiggle room, differences in pricing can have a sizable effect.

Leveraged finance also handles the underwriting of the leveraged senior loans and high yield. That includes getting the deal approved by credit internally and preparing the OM/CIM. They will talk to syndicated finance or the HY trading desk about the arranging or distribution. Sometimes, like in JPM, syndicated and leveraged finance are one group, sometimes they are separate.

Depending on the bank, leveraged finance or FSG may do the heavy lifting when it comes to the LBO model. A big difference is that FSG focuses primarily on LBO's and catering to financial buyer clients, while Lev Fin by nature sees LBO's but also handles levered corporate loans, as well.

GameTheory: thanks for the great description.

Agreed well said Sir.

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