Featured Insights

Although many companies first evaluate out of court alternatives, Chapter 11 remains as one of the primary venues in which distressed companies can find respite […]

Emerging Opportunities in Distressed M&A Jones Day | Configure Partners   Jamie Hadfield, Managing Director at Configure, presented alongside Caitlin Cahow, Jeffrey Ellman, and Dan […]

Topic: Understanding the Essentials of a Successful M&A Transaction HUNTON ANDREWS KURTH WEBINAR October 12, 2022 Jay Jacquin, Managing Director at Configure, joined Austin Maloney and […]

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.

Topic: Negotiating Loan Commitment Letters for Acquisition Financings Under Increasing Sell Side Timelines and Competitive Pressure HUNTON ANDREWS KURTH WEBINAR May 25, 2022 Jamie Hadfield, […]

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. 

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.”

With signs that the COVID-19 pandemic may be in the rear-view, private equity sponsors and lenders have shifted focus to underwriting new transactions. The 4Q of 2020 was one of the busiest on record for new sponsor acquisitions, but many of the sponsor acquisitions involved companies that were not materially negatively impacted by COVID-19. The question of COVID-19 adjustments to underwriteable EBITDA was less critical. Now that many of the new acquisitions involve targets that were significantly impaired by COVID-19, adjustments to financial performance in new loans have become more important.