Haynes Boone Senior Counsel James Markus was quoted in a 9fin article as private capital firms continue to increase their asset investing and lenders become more comfortable expanding their asset-based loan borrowing bases to include new types of assets.
“We're seeing a lot in terms of a kind of stretching and expanding of the borrowing base,” Markus told 9fin.
But that borrowing base is also expanding to include the very PE firms that regularly seek direct lending funding, motivated by a sponsor seeking extra funding, but not wanting to find another debt provider to support their move. It’s an unusual route, but an increasingly well travelled one.
“I know some private equity backed direct lenders are collaborating with term lenders, whether it’s their own affiliate or another, and trying to provide a more complete solution,” Markus said.
To read the full article from 9fin, click here.
