Sponsors Ramp Up Leverage, BDCs Get Aggressive in Middle-Market Lending - McDermott Will & Emery

Sponsors Ramp Up Leverage, BDCs Get Aggressive in Middle-Market Lending

Overview


Andrew McCune said in this interview that private equity firms are “pretty consistently” omitting equity from add-on acquisitions, funding them with cash and debt alone. Many such firms “are getting refinancings of the portfolio companies at the same time, which allow them to do the add-on pretty much for cash on the balance sheet and additional new debt,” Mr. McCune continued, “so there is no new equity.”