First a reminder to flag to your IR or comms lead: the Private Equity International Awards are open. Firms can now submit their 2019 highlights to be considered for the shortlists. Follow this link to find out more.
Today on Private Funds CFO we have insight from sister title Private Debt Investor‘s Andrew Hedlund on how private equity firms are working with private lenders rather than banks, particularly when pursuing buy-and-build opportunities.
Sponsors “like to build into the capital structure the ability to fund those deals with additional debt without reopening the agreement or having to refinance the facility,” one lender tells Hedlund. “[The increasing numbers of] buy-and-build transactions are resulting in junior delayed-draw term loans becoming more popular,” the lender continues. Read more here.
Elsewhere on the site, there’s more from our virtual panel of mid-market leaders:
- What is the one trend they don’t think gets enough attention? One CFO expects greater scrutiny of operating partner remuneration.
- How is artificial intelligence changing things? Everyone has a different sense of what will change.
Elsewhere on the web: Deloitte has surveyed CFOs, PE sponsors and company chairmen about the role of the portfolio company CFO. You can read the report here. If you don’t have time to read it, here is a nice quote from one (unnamed) CFO:
“The chairman once asked me in a board meeting what the optimal head count was. My response was ‘me and a computer’.”
Email prepared by Toby Mitchenall