Tag Archives | due diligence

iStock_000016468623Small

The Middle Market has a Weight Problem

Beneath the screeching Klaxon alarms, raised by frenetic media on all things related to deal making, lies a deep – and historically vibrant – Middle Market. Undaunted, intrepid reporters dash through press rooms clutching another article decrying companies “laden with debt”, “leverage limits”, “criticized assets” of the if-it-bleeds-it-leads meme – while a vast sector of the economy […]

Continue Reading
cube construction

Critical Elements of an Effective Leveraged Lending Platform

What does it take to be an effective middle-market leveraged lender? Are traditional lending models obsolete? Is this sector now the domain of non-bank debt investors? Whether you are a private equity investor, operating company, or co-lender, these questions can be pivotal to deal viability over the investment horizon. Finding out, mid-deal, that one or […]

Continue Reading
kid with mask upside down

Wall Street Journal misses on Bank article

While I have great respect for WSJ’s reporting overall, I think they got several material points wrong in a recent article on banking (“Banks Sit Out Riskier Deals – Regulatory Pressures Push Some Lenders to Let Lucrative Deals Go” 01/21/14). Based on my experience from front-line leveraged lending and my privilege of being involved with […]

Continue Reading
Global business results concept

The Power of Focus: Optimizing PE Portfolio Investments

We have reached a point in the maturity of the private equity industry where wheat is being cut from chaff. Overall, LPs are more sophisticated in their due diligence of funds and general partners – and the latter strive to differentiate themselves. One compelling differentiator is a replicable approach to maximizing market value of portfolio […]

Continue Reading
woman_breaking_pencil

The Peril of Pytr Prynciple and the Bank Meeting

We received such fascinating feedback on our post on relationships in commercial banking being a double-edged sword (see, “The Most Expensive Word in Banking? ‘Relationship’”) that we wanted to capture it in a follow on piece. Based on many of the war stories we heard, the topic touched close to home for many. Most wondered […]

Continue Reading
Imbalance

The Most Expensive Word in Banking? “Relationship”

Commercial bankers, especially those in the core and lower middle market, face so many obstacles to growth and profitability – from a looming regulatory environment to nimble, creative non-bank competitors – that it’s a wonder some don’t throw their hands up in despair and go fishing. But there is hope for those willing to address […]

Continue Reading
201304_confused_woman

Is LBO Lending Specialized?

“Ignorance more frequently begets confidence than does knowledge”. – Charles Darwin I am often asked whether middle market LBO lending is specialized. To a great extent, the answer is “yes”. Certainly, there are essential elements of transaction analysis, underwriting, and account management in middle-market leveraged deals that require a more sophisticated approach than is typically […]

Continue Reading