The rise of holdco PIK debt has created Australia-based financing structures in which senior lenders and mezzanine providers can coexist. They also offer GPs greater flexibility at what is, for now, an acceptable price
It has become increasingly costly for private equity firms to access borrower-friendly US financing for leveraged buyouts in Asia. The US markets are fickle and volatile, but Asian banks are also stepping up
There is money to be made providing debt-based solutions to growing Indonesian companies that struggle to get financing from other sources. But enter uninformed or unprotected at your peril
Led by SVB India, venture debt providers are beginning to take root in India. Can this nascent asset class replicated its success in developed markets and become a viable option for domestic start-ups?
Investors see great potential in Asia’s private debt markets, but some GPs and LPs’ attitudes towards downside protection and enforceability keep them out of emerging markets
The rise of peer-to-peer lending businesses in China is good for small companies that can't get bank financing and VC firms looking to ride the next wave. But concerns remain over regulation and reliability
With bumper LBOs few and far between, banks see limited opportunities for leveraged finance in Indonesia. And in the prevailing economic climate, they aren’t generous at acquisition or operating company level
The low-hanging fruit created by the post-global financial crisis troubles of highly-leveraged Australian companies has mostly been picked. Distress investors are looking in smaller and less obvious places
Once regarded warily by banks due to the lack of security in providing offshore financing against onshore assets, Asia buyouts that rely on offshore holdco structures are increasingly sought after.
The withdrawal of Western banks from Australia's leveraged financing market has created opportunities for others. A general sense of caution means that, while debt is available, it won't necessarily come quickly
Burning through cash and with no public market exit in site, many of China’s e-commerce players are losing the confidence of their investors. New rounds of funding come at depressed valuations – if they come at all
Numerous private equity and hedge funds are pursuing alliances with one another in Asia. Could a multi-strategy approach be the golden strategy for the region’s investment environment?
Australia’s banks have proposed a standard set of rules on who can do what in the event of a default. They say it will stimulate the mezzanine market but junior lenders claim the measures are too restrictive
Spooked by wider economic issues, European banks are pulling back from the leveraged buyout market. This presents a further challenge to private equity firms already adjusting to tighter financing conditions
Asia-focused private equity players from the likes of India and Australia are becoming fans of Singapore’s tax-efficient offshore structures
There is a clear demand for formal mezzanine funds in China but it’s unclear who will be allowed to meet it. Foreigners are at the back of the queue
The Woori and Mirae Asset Life Insurance deals are cause for hope, but foreign PE may still find life difficult
Mezzanine may increase its presence in Australia, but not overnight