alerts & publications
2020 Private Credit Overview and Update: Financing the Middle MarketApril 13, 2020
O’Melveny’s Finance and Restructuring teams authored “2020 Private Credit Overview and Update: Financing the Middle Market,” a chapter in ICLG’s 2020 Lending and Secured Finance Guide that provides an overview of the state of the markets for middle market and private credit lending through 2019 and identifies trends to watch for in 2020 and beyond.
Much has transpired in the weeks since the piece was submitted for publication. But while the coronavirus pandemic has impacted all financial markets, the principal focus of the article—increasing credit discipline—still holds. Proper credit diligence and controls and the ability to pivot towards creative restructuring solutions are more important now than ever.
Opportunities exist for savvy investors. The last financial crisis taught us that the middle market never really shuts down. Just as the 2008 recession helped catapult private credit to the forefront, the current situation presents a chance for middle market lenders to help fundamentally sound borrowers bridge the temporary loss of revenue and business, and to pursue asset acquisitions, mergers, and other combinations involving businesses for which bridging the gap is not sufficient.
Read the full chapter here.
This material is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Jeff Norton, an O’Melveny partner licensed to practice law in New York, Sung Pak, an O'Melveny partner licensed to practice law in New York, John J. Rapisardi, an O’Melveny partner licensed to practice law in New York, and Joseph Zujkowski, an O’Melveny partner licensed to practice law in New York, contributed to the content of this material. The views expressed in this material are the views of the authors except as otherwise noted.
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