Given that bank debt is basically frozen. I could be wrong but would private credit firms still be under some pressure from their LPs to deploy capital and finance Mm lbos?
How would $200-800EV business view marketing themselves in this environment?
| +131 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 25 | 19h |
| +121 | Americas M&A League Table Q2 Updated | 55 | 2h |
| +76 | Wealthy Parents / Jaded | 24 | 1d |
| +61 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 11 | 1d |
| +59 | How are hours rn for SA (interns) | 31 | 1d |
| +44 | Boutique firm wants access to my LinkedIn? | 38 | 5h |
| +33 | Investment Banking in Mexico | 9 | 1d |
| +30 | Investment Banking is Hard | 13 | 7h |
| +27 | Restructuring: Anti-climactic Experience | 3 | 9h |
| +21 | Excel macros for QOL formatting | 0 | 4d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
IMO valuations are down (a lot of these valuations are still informed by public comps which are obviously down, also LBO will be lower if higher rates) but activity is still high.
There are so many PE firms with so much money chasing assets in this space, and these firms are jumpy to deploy it. As you said, private credit firms still have plenty of dollars for debt to throw around as well.
Obviously it’s no 2021, but think things are still just fine in this space
Thanks for this, I guess should have thought about it from a PE investor’s standpoint. Do you think it will continue through 2023? It’s interesting because valuations are down, so pe firms are buying at a lower price but it’s harder to obtain financing.
With your portfolio, is your firm looking at late 2023 exits?
MM M&A is arguably the most recession proof out of all M&A/capital markets in recessions. Won't name the firm but an MD at one of our on campus info sessions gave us data to back up this claim in their company presentation. Yeah deal flow has slowed down and many bankers I spoke to are expecting a down year vs. 2021 but at many MM firms - 2021 was a record year or one of their best years in recent memory.
Agreed, MM is sought to be the most recession proof sector. It's more large-cap that would be affected in theory
Fwiw, private market valuations for tier 1 assets have not come down in most cases (from my experience). Tier 2 and below have seen corrections / broken processes but the glut of capital raised during 2020-2021 is fueling a steady stream of demand. Still plenty of dumb money out there paying last year’s multiples on inflated earnings just for the sake of deploying capital.
Majority of our financing now comes from direct lenders - much more certainty and flexibility than syndicated markets these days. May be some speed bumps and some more processes put on hold given bid/ask spreads and financing constraints, but would not worry about MM M&A activity mid-long term.
Itaque earum animi sunt doloremque est voluptatem voluptatum. Et dicta id nulla debitis. Dolor voluptas inventore laboriosam eius neque neque. Impedit dolor ut reiciendis. Aut labore eos a facere adipisci impedit omnis quos. Enim cum quis aut voluptatem. Quis quo distinctio doloremque corporis et rerum consectetur.
Velit libero consequuntur tenetur quis a ipsa non. Nam assumenda a et sit. Totam quisquam unde quibusdam. Maxime vero doloremque exercitationem odit aut magnam corporis id.
Temporibus ut nemo explicabo qui expedita et consequatur. Delectus est dolor doloribus et molestias. Est nisi facere voluptates assumenda ex.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...