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Adams Street Partners - Fri, 05/24/2024 - 19:12

The Advantages of Being a Lead Lender: Bill Sacher Q&A

Key Takeaways

  • The designation of lead lender often confers significant advantages for a private credit manager, including privileged access to data and influence over capital structure, covenants and loan terms
  • Private equity deal sponsors in a middle market company auction bring in lead lenders at the outset of the underwriting process, typically two to three months before a transaction closes, while club participants have only a few weeks to conduct their deal diligence
  • Lead lenders typically have greater access to the raw data that the company provides as part of the sale process; enjoy more management interactions; and have early access to third-party consultant work that pressure tests key metrics including quality of earnings, market analysis, and other potential risks
  • Underwriting advantages derived from lead lender status can drive superior risk-adjusted returns and mitigate potential losses, while the extra work undertaken by lead lenders can result in incremental fees

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Adams Street Partners

Adams Street Partners is a global private markets investment manager with investments in more than 30 countries across five continents. The firm is 100% employee-owned and manages $58 billion in assets across primary, secondary, growth equity, private credit, and co-investment strategies. Adams Street draws on over 50 years of private markets experience, proprietary intelligence, and trusted relationships to generate actionable investment insights across market cycles. We have a long history of managing complex insurance assets to deliver tailored alternative solutions to insurance company clients. Flexible portfolio construction helps to meet the evolving needs of insurance companies globally with the goal of achieving attractive risk adjusted returns. Adams Street has offices in Austin, Beijing, Boston, Chicago, London, Menlo Park, Munich, New York, Seoul, Singapore, Sydney, and Tokyo.

Neelm Hameer
Vice President, Investor Relations
nhameer@adamsstreetpartners.com
+1 773 720 9748

Adams Street Partners, LLC
One North Wacker Drive, Suite 2700
Chicago IL 60606-2823

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