Bloomberg Quotes Dan Fisher on Outlook for Private Debt Market
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Dan Fisher, head of Akin Gump’s integrated special situations group, has been quoted in the Bloomberg article “Private Debt Set to Extend Deal Dash,” which reports that the private debt market could see a flurry of deal making at the beginning of 2021.
According to the article, lenders are sitting on roughly $300 billion of dry powder. At the same time, it says, private equity sponsors will be encouraged by more receptive conditions to close tack-on acquisitions or secondary buyouts.
Bloomberg says the uptick in volume is being driven by pent-up demand following a standstill earlier in the pandemic, as well as increased optimism sparked by the COVID-19 vaccine and a better-than-feared picture for credit portfolios. While some restructuring talks took place ahead of covenant, principal and interest payment deadlines on December 31, the article notes that more workouts should be expected, with some borrowers likely to return to the bargaining table in the first or second quarter of this year.
Looking ahead, Fisher said, “You get one bite at the apple without too much scrutiny, but companies need to plan how much relief they need and must be realistic. The key is not to seek two quarters of relief and then come back a month later and ask for another three years of covenant waivers.”
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