deals

The EBITDA addback has become one of the most controversial aspects of deal documentation. Research shows lenders are resisting the most extreme examples.

Lenders refocus on backing acquisitions by sponsors, including Brookfield, Partners Group, and TPG.

Private debt funds’ share of buyout market financing has continued to climb, although they are likely to hit the ceiling eventually.

In 2012, debt finance for the German leveraged buyout market was completely bank dominated. Seven years on, debt funds have attained a majority market share.

The continent looks set to follow in the footsteps of the US as venture lending gathers steam, but challenges lie in wait.

A look at the debt fund's loan terms, expected performance and opportunity set.

The European Leveraged Finance Alliance has sent would-be investors in high yield bonds a questionnaire to encourage issuers to open up on key deal terms.

Although unfavourable deal terms have been in the spotlight, they are not the only cause for resentment among lenders in today’s market.

The level of EBTIDA addbacks is correlated to company size: the bigger the company, the more generous the adjustments. But lenders to smaller companies are still compromising on things they never thought they'd have to agree to only a couple years ago.

Daniel Zwirn, a former hedge fund luminary and now head of investment firm Arena Investors, is one of the authors of a white paper predicting trouble ahead for, among other things, mid-market loans and leveraged loans. In this video, he explains his concerns.