Andy Thomson
As an example of the practice surfaces, an industry body is warning other companies not to use the covid-19 outbreak as an excuse to try and raise additional finance through flexible documentation.
A new report from bfinance predicts capital raised by credit fund managers may grow this year on the back of an increase in distressed and opportunistic approaches.
With incumbent firms distracted by portfolio issues, technology platforms and start-ups may force their way into the market.
Harwood Private Capital has received £35m from British Business Investments and is aiming to post a final close by the end of the year.
The London-based manager has been given an additional €115m for an open-ended fund that typically targets up to 6% but is aiming for up to 9% in the current environment.
Frankfurt-based lending platform creditshelf has raised €62m, anchored by the European Investment Fund, as it seeks a final amount of €150m.
The London-based pan-European manager has already made several investments from the fund, which has a final closing target of up to €2bn.
Why determining appropriate leverage levels is challenging, the current crisis is not quite like the GFC, and direct lenders are preparing for a busy period.
The covid-19 crisis is prompting portfolio re-evaluations and alternative assets are of particular interest, according to a bfinance report.
In the third of our series, we asked three market professionals for their thoughts as coronavirus continues to make its impact felt in the private debt market.