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Since the global financial crisis of 2007-2008, the corporate financemarkets have been dramatically transformed. Most notable has been the rise of non-traditional providers of debtfinance such as private credit funds, which now aggressively compete with traditional finance providers like commercial banks.
Over recent decades, and especially since the 2007-2008 global financial crisis (GFC), the corporate financemarkets have changed considerably. First, there is more corporate debt now than ever. billion financing for Finastra and €4.5 billion financing for Adevinta ASA. The private credit market has reached $1.6
The idea is not new to encourage companies to increase their capitalization and reduce their bank debt (partly through more recourse to the capital market - CMU project). This disincentive is intended to reduce the attractiveness of debtfinancing, regardless of its origin. A very simple approach indeed.
The higher interest rates escalated borrowing expenses, making mega-deals (deals valued at $5 billion or more) significantly more expensive, due to their heavy reliance on debtfinancing, and impacted valuation multiples with higher discount rates. For example, while the $7.3
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