Dave Yancoskie’s Post

Private equity firms hand over distressed companies to rivals Private equity’s biggest names including KKR and Bain Capital are handing over distressed companies to the lending arms of rivals, as they struggle with tough economic conditions. The rash of handovers to creditors underscores the problems many private equity firms face as their portfolio companies contend with higher interest rates, stubborn inflation and supply chain issues. It also shows the growing influence of credit provided by the lending arms of the same large private equity firms. In recent years, private credit has been a faster-growing business than buyouts for many of the industry’s biggest names, including Apollo, Carlyle and KKR… #privatecredit #blackstone #banking #powell #interestrates #trending #financialtimes

🔄 Struggling with economic challenges, top private equity players like KKR and Bain Capital are transferring distressed firms to competitors' lending arms. The trend highlights the growing influence of credit within the industry, and urges additionally to reflect on the repercussions of past choices in today's financial landscape. Dive into the FT piece for deeper insights. 🔗 #PrivateDebt #DistressedDebt #SpecialSituations #PrivateEquityShift #CreditRisk #CovLight #EconomicChallenges 💼🏦 #FinancialTimes #BusinessNews

A great short read on the state of the M&A markets! #baincapitalcredit #capstonepartners #newwatercapital #antarescapital #vsscapital Bailey McCann

Private equity giants, such as KKR and Bain Capital, are orchestrating a strategic shift in the industry. Faced with challenging economic conditions, these firms are handing over distressed companies to the lending arms of competitors. This trend not only highlights the hurdles many private equity firms face due to higher interest rates, inflation, and supply chain disruptions, but also showcases the growing influence of private credit within the sector. In recent years, private credit has outpaced traditional buyouts for major players, reshaping the landscape. #PrivateEquity #PrivateCredit #FinancialShifts #EconomicTrends

NEW: Private equity’s biggest names including KKR and Bain Capital are handing over distressed companies to the lending arms of rivals, as they struggle with tough economic conditions. The rash of handovers to creditors underscores the problems many private equity firms face as their portfolio companies contend with higher interest rates, stubborn inflation and supply chain issues. It also shows the growing influence of credit provided by the lending arms of the same large private equity firms. In recent years, private credit has been a faster-growing business than buyouts for many of the industry’s biggest names, including Apollo, Carlyle and KKR. https://t.co/dy40VznhLX

Analysis: PFM deal a win for Creative Planning, 'meaningless' for Goldman Sachs https://buff.ly/45TPyQ1 Most of the advisors acquired from United Capital had an independent, entrepreneurial ethos that didn’t fit with Goldman’s culture or model. Many were unhappy with the deal, having bought into the story of long-term independence that United Capital founder Joe Duran had sold them. #terranagroup #TransitionConsulting #AdvisorRecruiting

Another good indication on the private credit space. A very exciting opportunity and time to change the way the industry works, operates and gets funded. And the SMB market it services, of course. #tradefinance #supplychain #smbmarket

Goldman Sachs just announced the sale of United Capital's FinLife business to Creative Planning. The deal grants Creative Planning advisors access to Goldman's investment products and services. With a combined $245 billion in assets under management and advisement, Creative Planning has been expanding steadily through acquisitions and organic growth. Creative Planning is run by Peter Mallouk, who has also written several investing self-help books. Those include a couple with motivational speaker Tony Robbins, who was once the “chief of investor psychology” at Mallouk’s firm. This move will be helpful for United Capital advisors who are accustomed to Goldman's products. Last month, Creative Planning entered into a strategic custody relationship with Goldman. #GoldmanSachs #CreativePlanning #UnitedCapital #WealthManagement #InvestmentProducts #AssetManagement #M&A

The Accordion team continues to see high levels of activity where companies are experiencing liquidity challenges due to macroeconomic conditions and higher interest rates, causing some stress with near-term maturities or potential covenant defaults. While the likelihood of a recession continues to diminish, some companies have "run out of gas" and expect a prolonged period of high interest rates leading to an extended period of restructuring related assistance being needed.