Jun 16, 2024
6 Comments
 

Based on the most helpful WSO content, here's what you need to know:

  1. Role of LevFin/Capital Markets Teams:

    • Debt Capital Markets (DCM): Focuses on tracking the debt capital markets, including bank loans, investment-grade debt issuance, and convertible bond transactions. They do not typically engage in valuation skills but are crucial in organizing and executing financing deals.
    • Equity Capital Markets (ECM): Involves tasks such as syndication, pricing, and creating prospectuses. They help set target valuations, refine roadshow presentations, and negotiate underwriting/bookrunning fees.
  2. Differences from Deal Teams:

    • Deal Teams (e.g., M&A): Primarily handle mergers and acquisitions, including sourcing deals, convincing clients, and performing valuations using methods like DCF, benchmarking, and public peers. They are more involved in the advisory aspect and client relationship management.
    • Capital Markets Teams: More focused on the execution of financing transactions rather than advisory. They work closely with deal teams to provide the necessary financing for transactions but do not typically lead the client relationship.
  3. Specific Functions at Firms like Golub:

    • At firms like Golub, LevFin and Capital Markets teams would be responsible for structuring and executing leveraged finance transactions, which may include high-yield bonds and syndicated loans. They ensure that the financing aspects of deals are efficiently managed and executed.

In summary, while deal teams focus on advisory and client relationships, LevFin and Capital Markets teams specialize in the execution of financing transactions, ensuring that the necessary capital is raised for deals.

Sources: Investment Banking vs. Capital Markets - How different are they?, Lazard vs. Morgan Stanley?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

not true. they deal with other lenders. Most of these deals are clubs not true syndications (although Golub, Ares and Antares, specifically, do some more broadly syndicated style deals). you will be gathering market feedback (pricing, terms, etc.) and the senior cap mkts folks will chime in even for new deals that won't have a syndication component just to make sure the deal is being pitched at market levels if you want to win. For existing deals when there is an amendment or upsize, the capital markets folks will be involved too, canvassing bank group, getting buy in, etc.

 

Yea but these funds also have cap markets people that take care of getting their back leverage, whether it be in terms of CLOs or just fund level facilities.

 
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