ESG in Aerospace & Defense Lending
Environmental, Social, and Governance (ESG) has become an increasingly significant influence on investment decisions for both equity and debt investors in private markets. The term “ESG” can be applied to a host of wide-ranging considerations – inclusion, environmental impact, and workforce/labor relations to name a few.
BSL Backstopping to Increase Certainty and Optimize Execution
One of the more significant changes for private equity sponsors in the upper middle market has been the rapid increase of lending funds capable of providing credit at a scale that rivals the lower end of the broadly syndicated loan (“BSL”), or Term Loan B, market. Traditionally, sponsors and borrowers look to the BSL markets when a facility reached the $200-300mm level.
SPACs Under Stress
While 2021 inflicted market discipline and valuation contraction upon SPACs, 2022 is set to bring further challenges. Degrading unit economics on account of rising labor and input costs combined with rising interest rates will pressure many companies both “above and below the line.”