Over the last 18 months, we’ve often written about how it’s beginning to feel a lot like 2007. There is indeed no lack of familiar signposts: the prolonged fundraising boom resulting in funds of a size we’ve never seen before; the EBITDA multiples paid for businesses creeping up and up to a level bordering on alarming; the ensuing increase in the amount of leverage being ploughed into businesses.
On the proliferation of cov-lite loans(1)
Leverage levels are creeping up to 2007 levels, but this time around there’s an added factor – the continued loosening of covenants. Should private equity investors be worried?
