Ari Blaut and Joyce Kwok Co-author Article on Recent Trends in Private Equity Acquisition Financing in The M&A LawyerMay 24, 2017
Ari Blaut and Joyce Kwok co-authored an article titled “Recent Trends in Private Equity Acquisition Financing: Growth of Private Credit” in the May 2017 issue of The M&A Lawyer. The article outlined the recent increase of the involvement of private credit providers in financing private equity acquisition financings. The increase stems from the March 2013 issuance of updated leveraged lending guidelines by the Federal Reserve, the OCC and the FDIC that limited the ability of more traditional banks to underwrite or arrange certain highly levered loans, clearing the way for private credit providers, which do not face the same regulations, to provide more of these highly levered financings. The article explained what private credit providers are, their participation in the acquisition financing process and the benefits of private credit providers to financial sponsors, among other topics. “Going forward, it is likely that private credit providers will continue to compete with traditional banks to provide financing in the financial sponsor leveraged buyout process,” Ari and Joyce concluded.