Since the global economic downturn, the lending markets have had their fair share of ups and downs. While the number of lenders still in the business has dwindled substantially, remaining lenders are taking on larger pieces of debt and financing more deals, easing the burden on private equity firms trying to put together a syndicate. What's more, collateralized loan obligations are in full force, with CLOs providing the lowest borrowing costs since the financial crisis. Credit funds are gaining in popularity as well. Mergers & Acquisitions convened a special roundtable to discuss the benefits and challenges associated with different lending vehicles in today's market. Boston-based commercial finance firm NewStar Financial sponsored the event, and the excerpted discussion that follows provides a range of perspectives from key players who are working in and with the financing companies. Participants included private equity investors, one of which invests in financial services companies, and lenders.
Fugazy, Mergers & Acquisitions (Moderator): How do today's overall economic conditions affect the financing market?