Ronald Kahn
Could that crazy law of unintended consequences be playing havoc with every LP’s dream of co-investing with their favorite GPs by actually lowering IRRs? Hard to imagine, but it could be true — at least for mezzanine funds, says Lincoln International's Ron Kahn.
Anyone familiar with the private equity sector knew that the first half of 2013 was going to be slow going for the M&A market.
For any one company there's more than one way to calculate EBITDA. Do you prefer pro-forma, adjusted or run-rate?
The debate continues as to whether today’s financing environment is as good, or better, than in 2007. But we tend to believe that, at least from a liquidity standpoint, conditions are more favorable than they were back then. Not only is debt readily available but for the first time there are two, very distinct, cash flow-oriented structures available to mid-market borrowers.
It’s actually better than 2007!
A new year is always a good time for reflection and it can be especially prudent to look back and see if there were any trends that transpired during the past year that may affect the coming year. As we start 2013, two such trends that occurred in 2012 jump out.
During the last few weeks, three finance companies successfully completed the IPO process to become publicly traded business development companies (BDCs), committed to lending to the middle market. The fundraises promise to add to a large, growing war chest of capital available to finance mid-market buyouts.
That's the question facing lenders who may worry that sponsors won't be as engaged with portfolio companies that they've already taken money out of.
With income tax increases fast approaching, company earnings improving, and acquisition capital readily available, now would seem like an ideal time for owners to diversify their assets and seek liquidity.
Attention private equity investors! Have you been wondering why all those family and entrepreneurial owned companies are not eagerly putting their companies up for sale?
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