U.S. Capital Advisory Group – Financing Market Update
Apr 2020
Private Credit Market Issues Amidst COVID-19
The current COVID-19 crisis is presenting numerous challenges for traditional middle market lenders.
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Aggressive Revolver Draws
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Portfolio Underperformance
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Potential for Deferral of Interest and/or Principal Payments
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Reduced Availability for Credit Funds
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These concurrent and systemic issues are leading to tightening liquidity across the private credit markets.
Although some traditional lenders are well-capitalized and will be able to deploy capital for new transactions, the market will continue to struggle in a number of areas.
Resulting Credit Market Activity
With a wide range of challenges facing traditional lenders, unconventional capital providers will drive a wave of private credit activity for the remainder of 2020.
Shorter-Term Remedies
*Provided by sponsors, lenders, or third parties |
Medium-Term Fixes
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Longer-Term Solutions
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This surge of activity will bring a complex set of challenges that are the focus of Lincoln’s Capital Advisory Group.
Lincoln Has Expertise Across the Entire Capital Spectrum
Through its full-service platform, Lincoln maintains the capability to assist companies across the entire spectrum of capital needs.
Liability Management
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Capital Raising
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Financial Restructuring
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Mergers & Acquisitions
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Valuations & Opinions
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Lincoln can help sponsors and borrowers weather the storm while positioning them for long term success.
Lincoln PerspectiveLincoln’s Capital Advisory Group is uniquely qualified to guide clients through uncertain times and towards optimal outcomes.
Engaging Lincoln allows sponsors and companies to successfully navigate challenging market conditions and ensure the best possible outcome |
Summary
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Lincoln International's U.S. Capital Advisory Group discusses private credit market issues amidst COVID-19 and the resulting activity for the remainder of 2020.
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