Searching...
15 results for “co investing”
“Help this podcast reach more fund managers and deal syndicators”
Hey. Thanks for listening to Making Billions. If you like this episode, could you do me a huge favor and go leave a review? This helps us to get the podcast to more ears to help people raise capital,
5:40 / 5:58
tactical advice5:40 – 5:58
and don't spend any time worrying about the middle market because it just doesn't work for them. And instead, what they've done is they've set their sights on the banks. I remember the first couple of times we would hear about a billion dollar unitra
13:31 / 15:20
from transcript13:31 – 15:20
You started to see capital come in, and it was very successful. If you look at the entities that were dominant in the middle market ten, fifteen years ago, they don't play in the middle market anymore. As their AUM, their capital base has grown, depl
12:50 / 14:31
from transcript12:50 – 14:31
And so because of that, their focus is on bigger credits. To do a $300,000,000 deal and a $3,000,000,000 deal, it's in the identical amount of work. But the truth is Fidelity and PIMCO and BlackRock and all the big buyers, they want the bigger, more
36:02 / 37:06
from transcript36:02 – 37:06
individually to do a deal. When you raise a 14 or 15 or $16,000,000,000 fund, it's challenging because you gotta populate it, and your money isn't there forever. Our funds typically are more reasonable in size, but we have so many different pockets o
38:45 / 40:08
from transcript38:45 – 40:08
you can't refinance because you can't pay 11%. You need a capital solution, which might be junior capital to help you bridge the gap to pay down debt. I was with a large LP overseas recently. I was talking about this secular change that sponsors need
12:38 / 13:48
from transcript12:38 – 13:48
We've gotta be really selective, and we have to have a thesis behind what we're doing. By far, that's the hardest business that we're in. Is there anything else that's interesting that falls into the type of deal structure you do? Occasionally, we'll
47:57 / 49:20
from transcript47:57 – 49:20
...out of very large funds. That market continues to consolidate. And the focus of most folks in direct lending and private credit is on opportunities that are larger than $50,000,000 checks. It's 100 plus million dollar allocations. So you have this pi
24:46 / 25:51
from transcript24:46 – 25:51
some financings for you. We can do it in a way that meets whatever your specific needs are. We can do it in a way that gives us the protections we need, but we can also do things, put other types of provisions. Maybe we can structure in a way to get
24:38 / 25:49
from transcript24:38 – 25:49
investing either on a totally unlevered basis or in the upper half to upper two thirds of the capital structure in a manner where we feel we're relatively downside protected and collateralized by some underlying recurring revenue stream that could be
20:20 / 21:22
from transcript20:20 – 21:22
We originally did it through the syndicated market only. Now we do it through the direct lending market and capital solutions. And are you of a scale that you can continue to be relevant? And so direct lending, we didn't think we would have eight yea
1:08:14 / 1:09:27
from transcript1:08:14 – 1:09:27
are the very large number of new funds that are being formed typically by a one or two person GP. Meaning, there's somebody that might have been at a famous firm or did a famous deal, but they didn't get the economics, they didn't get paid for it, th
46:17 / 47:33
from transcript46:17 – 47:33
There's gonna be a lot of down rounds, broken fund raises, broken syndicates, and those guys are gonna go out of business. And I was sharing that with a large LP, and that large LP looked at me and laughed and said, Josh, that's ridiculous. It's not
6:35 / 7:45
from transcript6:35 – 7:45
Why that set of relationships matters is today, we're able to work with a given middle market private equity sponsor and say to them, we can invest directly in your fund. We can co invest with your portfolio companies across your funds. We can provid
33:40 / 34:46
from transcript33:40 – 34:46
I mean, a senior deal was three and a half times levered with a 600 or 700 basis points spread to the risk free rate. Mezz deals were 15%, 16% fixed rate coupons with seven and a half percent of the company in warrants that struck at zero. You charge
11:15 / 12:18
from transcript11:15 – 12:18
Have a podcast?
Run your podcast through Clypt
Get ranked clips, hooks, and ready-to-post copy from your own episodes. Free to try.