Buyout Debt Reaches Pre-Financial Crisis Levels
Bankers are preparing to issue approximately $138 billion in buyout debt over the coming months, a level not seen since before the financial crisis. According to JPMorgan Chase and Bloomberg reports, borrowers are rushing deals to market early amid strong investor demand ahead of an expected wave of competing offerings and U.S. elections in November. The surge spans various transactions including take-private deals, corporate asset separations, and buyouts by private equity owners. Strong credit fund inflows and robust collateralized loan obligations (CLOs) are supporting the market's ability to absorb this supply. However, a crowded environment may increase investor selectivity regarding companies, industries, and sponsors. In August alone, notable transactions included Victory Capital Holdings' $3.5 billion term loan B financing for First Eagle Investments and Goldman Sachs arranging $1.95 billion in secured debt for Amwin Group's acquisition of Steadfast Group.
