Media – Blog
September 1, 2007
In April 2007 increasing losses sustained by bonds with exposure to subprime mortgages became apparent. [See “The Subprime Flu,” April 2007] In the months that followed, this brought on a widespread credit contagion and took many investors by surprise. Among the hardest-hit areas was the short-term credit market that came
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August 1, 2007
Utilization of debt for venture capital backed firms has become an increasingly popular strategic component of young companies’ capital structure. These emerging growth companies often view debt financing as a means to augment their cash position without having to give up as significant a portion of their ownership as required
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June 1, 2007
Executive Summary In the past year or so, LBO minefields started to appear in the “safe and sound” investment-grade credit landscape filled with A and AA-rated names. About 27% of the A-rated corporate index may be buyout targets. The LBO of Sallie Mae brings takeover risk to the “safe haven”
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April 1, 2007
When the obscurely named ABX.HE.BBB-.06-1 crawled from Wall Street trading computers into millions of living rooms through the national media last February, a system meltdown was fast approaching. The ABX isn’t an Internet worm; it is a specimen of “asset-backed credit default swaps,” or a quasi insurance policy on borderline
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February 15, 2007
Over the past few years, debt has evolved from a balance sheet burden to a benefit within the venture community. Debt funds, finance companies, banks, and hedge funds have all taken on venture lending positions in order to capitalize on the explosive growth in this industry. Yesterday, an article in
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January 25, 2007
The venture capital market has continued to show impressive growth since the internet bubble burst in 2001, marked by the five-year high of over $25 Billion in funding in 20061. An integral component of this market is venture debt, an approach that is increasingly utilized by young companies seeking to
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November 1, 2006
Introduction The CFA Institute, an investment industry trade group formerly known as the Association for Investment Management and Research (AIMR), establishes and interprets the AIMR Performance Presentation Standards (AIMR-PPS) in North America. In more than a decade since their introduction, an increasing number of investment managers have voluntarily complied with
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September 22, 2006
Background A venture capital backed mid-stage communications company needed an equipment loan to finance new equipment acquisitions and to refinance existing debt to allow for more financial flexibility. This case study illustrates the benefits of using a direct lending source as opposed to the possible pitfalls of utilizing a broker
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September 21, 2006
Background A late stage Venture Capital backed Bio-Tech company was seeking debt to extend its runway. However, the company had very little collateral with which to secure debt financing. This case study illustrates the benefit of Growth Capital (also known as an “airball” by lenders or ”Venture Debt”) as a
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September 20, 2006
Background This early stage biotech company sought to expand its line of credit and extend its cash runway. Debt Advisors Group* assisted them from start to finish, including needs evaluation, bid solicitation, proposal assessment, terms negotiation, competitive analysis and summary recommendation. This case study illustrates the key financing goals, decision
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