Fundraising

Proposed Raising Of BDC Leverage Cap Prompts Debate

Legislation that would ease leverage constraints on business development companies has started a rare public controversy within the BDC community, a group that lends to sponsor-backed businesses with annual revenue of less than $500 million.

KKR's 2006 Fund Enters Its Home Stretch

It was one of the biggest buyout funds ever raised, it backed some of the largest LBOs, and it was part of the vintage 2006 that had to contend both with a financial crisis and the Great Recession. Nevertheless Kohlberg Kravis Roberts & Co. appears to be on a reasonably successful track with KKR 2006 Fund LP as it continues the harvest phase.

Need To Meet: Stefan Shaffer, Managing Partner, SPP Capital Partners LLC

Market At A Glance

North American buyout shops raised $2.2 billion in investor commitments in mid-May, bringing the total for the year to $33.8 billion for buyout and mezzanine funds. At this point last year, firms had raised $63.8 billion for new funds.

Dividend Recap Recovery Risk = 'Hollow Threat,' Moody's Finds

A company that conducts a dividend recap and then defaults on its debt fares no worse for its creditors than a company that defaults without a recap, Moody’s Investors Service Inc. reported.

Need To Meet: Geoff Smart, Jordan Burton, ghSMART & Company Inc.

Market At A Glance

U.S. buyout shops added $3.9 billion to the year’s fundraising tally during the latter part of April, bringing the year’s total of buyout and mezzanine funds to $31.5 billion.

Most Active Sponsors Secure Better Bond Terms: Moody's

The dozen most active sponsors, measured by number of bond deals done by their portfolio companies, are more effective at enticing lenders to accept less restrictive covenants on portfolio company bonds, Moody’s Investors Service Inc. said.

Bain Sets $250M-$300M Goal For CLO Fund

Sankaty Advisors has been investing in collateralized loan obligations virtually since its establishment in 1998, but the firm, the credit arm of Bain Capital Partners LLC, is only now launching a fund dedicated to the strategy, a person with knowledge of the firm’s plan told Buyouts.

GE Capital Ramps Up Lending For Tech Buyouts

Sensing a growing appetite for buyout deals in the tech sector, GE Capital Corp. is boosting its lending capacity in the category, an executive of the company told Buyouts.