Positive sentiment around stability in interest rates and workarounds to get buyers and sellers to the finish line may fuel dealmaking in 2024, investment bankers said Thursday. “Clients are more actively calling, and people are picking up pencils on processes that are ready to kick go,” said Michele Cousins, head of leveraged capital markets for the Americas at UBS. “With the recent strength in markets and reduced volatility, people are feeling more comfortable.”
Leverage-loan activity, often a component of private-equity deals, as well as corporate refinancing have come back “quite strong” in recent weeks after a lull in October, she said. Looking back on the early part of the second half of 2023, loan activity “started to feel like we were back to the races,” she said, but then volatility returned to markets in October. Overall, 2023 has been a weak year for leveraged buyouts, with volumes down more than 50% from 2022. There have only been about 25 transactions so far this year, with two weeks remaining. “That’s a remarkably low number,” Cousins said. Max Justicz, co-head of financial sponsors for the Americas at UBS, said favorable commentary around the Federal Reserve’s latest …
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Leverage-loan activity, often a component of private-equity deals, as well as corporate refinancing have come back “quite strong” in recent weeks after a lull in October, she said. Looking back on the early part of the second half of 2023, loan activity “started to feel like we were back to the races,” she said, but then volatility returned to markets in October. Overall, 2023 has been a weak year for leveraged buyouts, with volumes down more than 50% from 2022. There have only been about 25 transactions so far this year, with two weeks remaining. “That’s a remarkably low number,” Cousins said. Max Justicz, co-head of financial sponsors for the Americas at UBS, said favorable commentary around the Federal Reserve’s latest …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]