KKR And Apollo Look To Debt Investments

August 2008 | Top Stories

Private equity firms continue to adapt to an environment characterised by a dearth of LBO financing, and giants like KKR and Apollo are increasingly turning to debt and distressed-asset investments. As tight credit markets and a lack of liquidity continue to cramp the traditional style of private equity firms, deals completed worldwide in this year have fallen by 71% from the same point in 2007 to US$179.4bn. In separate filings to the SEC, both firms said that as a result they plan to try and offset Q108 losses through investing more in mezzanine debt, a hybrid form of subordinated debt

If you would like to subscribe to Corporate Financing Week and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Corporate Financing Week please click on the trial link below.