Junior Capital
Private Debt Wave Rolls On Even as Doubts Mount
NEW YORK, January 3, 2018 – And as the direct lending market matures, established managers that have grown in size may get an edge in future fundraising, says Ken Kencel, president and CEO at TIAA’s Churchill Asset Management.
“The window for newer managers to raise money is going to continue to narrow,” Kencel says. “Consultants will increasingly allocate to managers with scale.”…
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Sentinel Capital Partners
December 2017
Churchill Asset Management Completes Second Middle Market CLO Offering at $340 Million
New York, December 6, 2017 — Churchill Asset Management LLC (“Churchill”), a leading provider of senior and unitranche debt financing to middle market companies, today announced the closing of its second structured debt investment offering, a $340 million collateralized loan obligation fund (“CLO”) named TIAA Churchill Middle Market CLO II Ltd.
Churchill Asset Management Completes Fundraising for Inaugural Middle Market Senior Loan Fund as Part of Nuveen With Over $1.1 Billion in Committed Capital
New York, November 29, 2017— Churchill Asset Management LLC (“Churchill”), a provider of senior and unitranche debt financing to private equity-owned middle market companies, has completed fundraising for Churchill Middle Market Senior Loan Fund, LP (and related investment vehicles), its inaugural fund as part of Nuveen with over $1.1 billion in committed capital (the “Fund”).
Mid-market CLO Roundup: New Deals Add to Bumper Year
NEW YORK, November, 2017 – Churchill Asset Management joins the expanding list of the managers in the CLO market this year by pricing its first new issue middle-market CLO TIAA Churchill Middle Market CLO II. Arranged by Wells Fargo, the deal receives a warm welcome as it achieves the second tightest triple A spread of 150 basis points and a low funding cost of 2.17%. Wells Fargo remains the dominant arranger in the market as it continues to bring more deals to the field and raise its volumes to $7.56 billion – roughly 43% of the market…
Direct Lending Managers Face Rough Road Ahead
NEW YORK, October 25, 2017 – Indeed, loan covenants for borrowers have become a point of distinction in the market, with some established direct lending firms sticking to stricter terms, but other newer entrants – or managers seeking to grow faster – offering lighter provisions, says Randy Schwimmer, senior managing director at Churchill…
LCD Middle Market Review
NEW YORK, October, 2017 – Ken Kencel, CEO of Churchill says, “We see credit facilities as small as $250 million in size that are being done cov-lite. Three years ago that would not have been the case. As a result, the upper middle market has become more syndicated, more distributed, and more underwritten to sell. Lenders in this space have shifted from the ‘storage business’ into the ‘moving business’ —often at the expense of covenants and other structural protections, with lower pricing and higher leverage. This is something that has happened increasingly in the last several months.”
Covenants: Lofty Leverage Levels and Aggressive Addbacks
NEW YORK, October, 2017 – EBITDA adjustments have expanded beyond conventional add-backs like the cost of headcount reductions. For example, one of the more aggressive add-back that firms now request includes taking into account the projected revenue generated from a new product or customer over the next 12 months, says Randy Schwimmer, senior managing director and head of origination and capital markets at Churchill Asset Management.