Commercial real estate markets on either coast are outperforming assets in the mid-U.S., with the hottest market in the New York metropolitan area, according to Matt Galligan, president of CIT Real Estate Finance.
Fitch Ratings said in a report that signs of a pickup in LBO and M&A transactions, financed in part by leverage loans, may boost fee revenues, but Fitch sees the potential for balance-sheet risk for major U.S. banks in the process.
MorrisAnderson promoted Alpesh Amin from director to managing director. Prior to joining the firm in 2008, Amin held restructuring, turnaround and mergers and acquisitions roles with Huron Consulting Group, Bridge Associates, Merrill Lynch and LaSalle Bank.
According to Dow Jones LP Source, limited partners showed less support for U.S. and Europe private equity funds in the latter half of 2012, leasing to an overall yearly decline in funds raised for both regions.
Regardless of the ultimate form of the transaction, recent history has shown that second lien debt has increasingly become a popular means of currency to take control of underperforming and overleveraged companies. These types of transactions will continue to become more prevalent as more participants enter this arena through the continuous raising of distressed fund capital. In addition, the success that some funds have had using these tactics will lead to their increased use in other distressed situations.
M&A, Capital Markets Update: There’s Improvement for Sure, But We’re Years Away From the Glory Days of High Valuations
In the following article, Tim Stute, managing director and principal at Milestone Advisors, assesses 2010 in terms of merger and acquisition activity in the commercial finance sector. While such activity has increased in the later half of last year, valuations remained low due to lack of competition from banks. In looking forward to 2011, Stute expects steady improvement in M&A activity with modest, yet rising deal values for the near term.