Private market debt investment is a type of investment that is usually linked with issuers and assets that are either sub-investment-grade or unrated. These types of investments often involve securities that come with restrictive covenants and contingencies such as callability…

Special Situations Due Diligence Special situations investments refer to unique opportunities that arise due to certain circumstances such as mergers, acquisitions, or bankruptcy. The analysis is more detailed in private markets than in public markets due to the role of…

Financial distress is a term used to describe a situation where a company’s asset value (V) is less than the face value of its debt (D). This imbalance can lead to severe consequences for the company, including bankruptcy, restructuring, or…

Distressed debt is a financial term that refers to the fixed obligations of issuers who are insolvent, at risk of insolvency, or have a higher probability of defaulting on their interest or principal payments on time. Insolvency is a state…

Private debt investment funds have emerged as a significant source of debt capital in the aftermath of the Global Financial Crisis of 2008–09. This emergence was primarily due to the implementation of stricter bank capital standards. These funds are primarily…

Private market strategies are a crucial part of the financial landscape, encompassing areas such as private real estate, infrastructure, and buyout equity. These strategies often rely on a combination of borrowed capital and equity to develop and operate an asset…

 Private market strategies are investment strategies that focus on non-publicly traded investments. These strategies often employ complex financial structures such as mezzanine structures and unitranche debt. To illustrate, consider an example of a private equity firm investing in a…

In fixed-income instruments, leveraged loans, high-yield bonds, and convertible bonds hold a unique position. These instruments, characterized by either fixed or variable-rate coupons, offer specific benefits and risks to both private market issuers and investors throughout the investment life cycle….

The investment life cycle in private markets, which includes private equity, real estate, and infrastructure, is characterized by the use of debt financing during periods of development or transformation. This use of debt in private markets is significantly different from…

Private equity is a distinct asset class that provides investors with the potential for high risk-adjusted returns and diversification benefits compared to public equity holdings. This is primarily due to the specific investment focus of venture capital, growth equity, and…