Private Companies Pivot to Conserve Cash, Await Eventual Opening of IPO Market
Private equity and venture capital-backed companies are faced with conserving cash and shoring up costs in the choppy stock market of 2022, as capital from initial public offerings and syndicated debt markets dries up, investment executives at Goldman Sachs said.
VC Investors To Pour Money Into Biotech, Software In 2021
Looking forward to 2021, we see another strong year for venture capital and a great awakening for venture debt, a type of debt financing provided to venture-backed companies by specialized banks or non-bank lenders that is less dilutive than equity financing and often complementary to venture capital.
U.S. Pension System Ramps Up Co-Investing
Fallout from the coronavirus pandemic failed to slow a push into private equity co-investments by one of California’s largest public pension plans during this year’s first half. The $253.6B California State Teachers’ Retirement System ramped up commitments to both co-investing alongside fund general partners and to opportunistic debt funds.
In Pandemic Era, PE-Owned Retail Is As Vulnerable As Ever
Takeovers by financial firms have dropped off, but there are many companies from past buyouts in distress now, as debt and the pandemic take their toll.
Venture Trends And The Lure Of Southeast Asia
Trade tensions, Chinese debt reduction and other factors have led to a 90 percent drop in Chinese investment into the U.S. over the last couple of years. Despite this decline, venture capital in the U.S. continues to be popular, with U.S.-based VC firms raising over $28 billion in the first half of 2019.
It's Risky To Be A Creditor In This Private Equity World
Credit investors who’ve plowed billions of dollars into private equity-sponsored LBO debt will be hit hard when the credit cycle turns and defaults rise, Moody’s Investors Service warns in a new report.
Passive Bond Funds Rewarding Debt Danger Stability, Says BIS
The Bank for International Settlements (BIS) sees rising debt issuance as potentially destabilizing for global markets, and points to a curious suspect, index funds. The BIS warned that borrowers may be tempted to ignore the interests of their bondholders and take on additional leverage to meet demand from index trackers, according to a report issued.
SoftBank's Plan Raises Doubts On $33B Bond Guarantees
Billionaire Masayoshi Son’s plan to list his cash-cow Japanese telecom business is raising concern among observers that the company might stop guaranteeing the debt of its parent SoftBank Group Corp., worsening the quality of its credit.
Global Debt May Contain Seeds Of Next Financial Crisis
A buildup of debt needs to be more closely monitored to ensure it doesn't spark the next financial crisis, according to former Bank of England Governor Mervyn King. "The areas of weakness in the current system are really focused on the amount of debt that exists, not just in the U.S. and U.K. but across the world," he said on Bloomberg Radio.
South Korea Family Business Dynasty Feels The Heat
In a preemptive measure against tougher government regulation on unfair practices of large conglomerates, the family members of Korea’s Hanwha Group have shed their combined 45 percent stake in IT solutions company Hanwha S&C.