MM PE Question- do you use Debt Advisory services?
I have an opportunity to interview with a MM investment bank in their debt advisory practice. The role entails working with sponsors to raise debt/structured capital to support leveraged buyouts, refinancings, etc. Based on my research, I think the most common MM banks offering the service are HL, Lincoln, Solomon, William Blair, RayJay, Stephens, among a few others. HW for example, doesn’t offer the service. I think Baird might, but it looks very limited.
I am doing M&A at a smaller boutique that doesn’t offer debt advisory. I am wondering how often these services are used and what drives the decision to hire a debt advisor. Also, in regards to exit ops to PE, would you consider someone with a debt advisory background?
Very rarely use them ($4Bn AUM fund). For most deals we just reach out to a handful of lenders we know well (5-10) and will work with them on all the debt stuff. The only times I’ve used a debt advisory firm were for unique situations (very hairy deals, new/unique industries, deals significantly larger than usual). They’re quite nice because they take a lot of work off your plate and can l surface good lenders but are very expensive so will avoid using them unless necessary.
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