During a Wednesday afternoon panel at The Deal's Fifth Annual Private Capital Symposium, Mathew Lori, a managing director at New Mountain Capital, discussed how leveraged lending markets are affecting valuations.
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"The current state of the markets is actually good on the buy side," said Lori. "Those with more capital are willing to use more capital. We've been getting access to a lot of dealflow because of that."
"In the last few years, liquidity was driving valuations, but now the cycle has turned, and fundamentals are back to driving value," he continued.
Nevertheless, the openings in the debt markets haven't cured all of the problems that buy-side financial buyers face when buying assets. "Last year sellers put a lot of emphasis on valuation," Lori said. "Now they put more on certainty. It's made it more difficult for financial buyers to compete with strategics." - George White
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