Private Equity International | Covenant Breaches Trend Upward as GPs Navigate Uncertainty

Feb 2023

Originally posted by Private Equity International on February 22, 2023.

According to the Lincoln PMI (LPMI), private equity (PE) firms and their portfolio companies are becoming increasingly concerned about financial covenant breaches and debt maturity as market volatility continues. The LPMI also reported that while PE-backed companies are increasingly encountering covenant breaches, the figures remain below the peak COVID-19 pandemic levels; however, Lincoln predicts that number will continue to rise. Index findings also indicate that interest expense is increasing, leading all parties to use creativity when structuring deals to conserve capital and deliver investors with desirable returns.

View the original article.

Summary

  • Richard Olson, Managing Director in Lincoln’s Valuations & Opinions Group, recently joined Private Equity International to discuss financial covenant breaches and debt maturity, based on findings from the Lincoln PMI, a key insight into private market performance.

  • Sign up to receive Lincoln's perspectives

Contributor

Meet Professionals with Complementary Expertise

Related Perspectives

In the Headlines: Q1 2024 Lincoln European Valuation Insights

Lincoln International’s Valuations & Opinions Group recently shared findings from its proprietary European valuation insights with several publications. Bloomberg Private Debt Investor Prequin

Webinar | Valuations & Opinions Group Q2 2024 Private Market Webinar

Thank you for your interest in Lincoln’s Webinar: Valuations & Opinions Group Q2 2024 Private Market Webinar.  All request submissions will be evaluated and a member of our team will… Read More

City A.M. | UK Acquisition Deals Fall to Pandemic Low as Foreign Eyes Turn Away from London

Originally posted by City A.M. on June 4, 2024. UK M&A fell to its lowest in March since 2020, with foreign firms’ purchases of British businesses nearly halving over Q2.… Read More

Private Equity News | Private Lending Firms Face Stiff Pressure as Banks Re-enter Leverage Loan Market

Originally posted by Private Equity News on June 3, 2024. Risks tied to private credit may be tested as investment banks re-enter the leveraged lending market. “Proactive repricing is an… Read More