Cloud 9fin

Private credit fundraising faces new challenges as high interest rates shift investor focus to established fund managers. Amidst this transition, niche strategies are on the rise, with innovative fund launches in asset-based and specialty finance. The podcast discusses key differences between US and European private credit landscapes, notably regarding ESG regulations. Additionally, the emergence of perpetual capital and customized investment structures signals a dynamic evolution, hinting at a potential recovery in the sector.

The Supreme Court in a 5-4 decision on 27 June ruled that a bankruptcy court does not have the statutory authority to provide non-consensual third party releases. Such releases had been a crucial part of the Purdue Pharma Chapter 11 plan, among others, where the bankruptcy system was being employed to shield non-debtors from litigation without full creditor consent.The decision coincided with the timely publication of Unjust Debts by UNC law professor Melissa Jacoby, which provides a critical history of how the use of Chapter 11 has expanded far beyond the initial scope laid out in the Bankruptcy Code enacted in 1978.For this week's episode of Cloud 9fin, global head of distressed and restructuring Max Frumes discusses this refreshing and crucial snapshot of bankruptcy law that is both technical and accessible with Professor Jacoby, and how current events might further shape the bankruptcy courts around the country.

Max Frumes, global head of distressed and restructuring, Jane Komsky, a distressed legal analyst, and Sami Vukelj, a private credit reporter, dive into the evolving landscape of liability management in distressed firms. They reveal how recent transactions, like those involving Pluralsight and AMC Entertainment, are allowing broader lender participation in recovery efforts. The trio discusses the shift towards more collaborative restructuring methods and the ongoing challenges borrowers face amid rising interest rates, shedding light on innovative financial strategies in turbulent times.

US leveraged buyout volumes are slowly starting to improve, with the likes of Apollo, Thoma Bravo, CD&R and TowerBrook making moves. This comes after a long period where buyers and sellers struggled to find common ground in valuations and could bring a welcome shot of new debt issuance for investors that are eager to lend. So what changed? And is this improvement in deal activity significant enough to satisfy investor demand for paper?In this week’s episode of Cloud 9fin — recorded before the recent spike in market volatility — US LevFin editor David Bell sits down with senior reporter Sasha Padbidri and credit analyst Alec Keblish to unpack the hottest themes of recent LBO activity.

The credit markets are constantly evolving, and CLOs are no exception. As hopeful new managers enter, less successful platforms fall away. This keeps the market healthy, says Napier Park’s global head of the CLO management platform Serhan Secmen. But what makes a manager successful?In this week’s episode of Cloud 9fin, Serhan joins our own global head of CLOs, Tanvi Gupta, for a granular look at mezzanine and equity tranches, how to evaluate CLO positions and how shopping for CLOs can be a lot like buying a new car.Follow all of Tanvi’s coverage of the CLO market here on the 9fin dashboard.Have any feedback for us? Send us a note at podcast@9fin.com.

Tumultuous waves have long beset Thames Water, but last week a massive one hit the imperiled UK utility company head on as Moody's cut its opco debt to junk.With too much debt, poor quality assets from decades of under investment, and a plan the water regulator rejected, Thames's opco downgrade was widely expected across the market. But what happens next?To answer that question, 9fin editor Dan Alderson, senior distressed reporter Will Macadam and ABS editor Owen Sanderson hit the studio just after the downgrade was announced. The resulting bonus episode of Cloud 9fin is packed with insights and constructive speculation about what Thames's fallen angel status, license challenges and a new UK government entail for the uncharted waters ahead.Find all of our coverage of Thames Water here on the 9fin dashboard. Have any feedback for us? Send us a note at podcast@9fin.com.

For the vendors and firms owed money by a bankrupt company, the primary motivation to join an Unsecured Creditors’ Committee is often simple: maximize economic recoveries. But Doctor Dennis Deruelle had other priorities.Listen as Dennis recounts the struggles faced by hospital staff and patients from his viewpoint as the Executive Medical Director for Hospital Medicine and Critical Care during the rapid shuttering of American Physician Partners.In this interview with 9fin deputy distressed debt editor Rachel Butt, Dennis lays out the concerns he had during the process and why he joined the UCC as part of the company's bankruptcy proceedings. He shares what his experience was like as the only true clinician on the committee, and what he thinks healthcare vendors and the credit industry can learn from the APP process.

In the realm of private credit, thinking local is a must. Which means knowing your place can determine whether an investment will succeed or generate losses.For this week's episode of Cloud 9fin, senior reporter Bianca Boorer sits down with Hayfin's Carlos Pla. They talk about the nuance of private credit special situations in Europe, how it differs from the US market and what it takes to succeed in the various European jurisdictions.Carlos is a portfolio manager for Hayfin's special opportunities strategy and chairman of the investment committee for the special opportunities, tactical credit, healthcare and private equity solutions strategies.Find all of our coverage of Hayfin's latest market moves here on the 9fin dashboard. Got any feedback for us? Send us an email at podcast@9fin.com.

Shout if you’ve heard this one before: a CPA and an MD walk into a bar. The MD says, “Plz Fix,” and the CPA says, “sure, but I’ll need three forms of ID and an engagement letter first.” In response to which the MD, of course, literally explodes.Not heard it? Well you may soon, because private equity ownership of auditing firms is causing concern in the wake of deals like the New Mountain Capital acquisition of Grant Thornton earlier this year.In this week’s episode of Cloud 9fin, our LevFin editor David Bell and senior reporter Sasha Padbidri look into this rising trend and how it’s being received by the debt market.Then, Sasha speaks to Dr Steven Mintz, a professor of accounting at California Polytechnic State University, author of two books and a popular blog Ethics Sage. They talk about how the entrance of PE into the audit business is sparking concerns both new and familiar.

Overheard in the Southern District of Texas: Don’t be a meanie! Ok, we may be paraphrasing here a bit, but taking the decision in Robertshaw and the anticipated Incora decision together, the court may be signaling that lenders need to stop being so Incora-gible and tone down the violence.In this week’s episode of Cloud 9fin, reporter Max Reyes digs into these decisions with legal analysts Jane Komsky and Cat Corey, looking at how they contrast with one another and prior case law in the district.Find our reporting on the Robertshaw decision here and follow this thread to stay up to date on the latest with Incora here at 9fin.com.