Credit Risk Archives | Private Equity Bro

What Is a Fulcrum Security in Distressed Restructurings?

26 September 2026

Distressed restructurings allocate enterprise value down the capital structure in order of priority, and somewhere in that stack the money…

Section 363 Sale vs Plan Sale in Chapter 11

23 September 2026

Speed decides many distressed sale outcomes. The Section 363 sale vs plan sale choice is a judgement about where value…

Fund Finance Underwriting for Lenders

10 September 2026

A subscription line and a NAV facility can carry the same borrower name and almost nothing else in common. The…

Rights Offering Backstop in Chapter 11 Restructurings

8 September 2026

A Rights Offering Backstop turns a hoped-for capital raise into a funded one. In a Chapter 11 rights offering, eligible…

Loan-to-Own Strategy in Retail Distress

7 September 2026

An investor buying a defaulted mortgage on a half-empty shopping centre is doing two things at once. It is pricing…

Debt-for-Equity Swap in Distressed PE: Case Study

29 August 2026

When a private-equity-backed company cannot service its debt, the negotiation stops being about interest rates and starts being about ownership.…

DIP Financing vs Exit Financing in Chapter 11

23 August 2026

A debtor-in-possession loan sits at the top of the capital structure, is over-collateralised, carries restrictive covenants and mandatory prepayments, and…

DSCR in Real Estate: How Lenders Measure Debt Capacity

17 July 2026

The debt service coverage ratio, or DSCR in real estate, is net operating income divided by annual debt service. It…

Debt Yield Explained: How Lenders Measure Real Estate Loan Risk

6 July 2026

Debt yield is a property’s net operating income divided by the loan amount. It measures the unlevered income return a…

OID vs. Upfront Fees: How Debt Financing Costs Differ

29 June 2026

Original issue discount, or OID, is a debt pricing mechanism where a lender funds less than the stated principal at…

Minority Interest vs. Non-Controlling Interest: What’s the Difference?

14 June 2026

A non-controlling interest, or NCI, is the portion of a consolidated subsidiary’s equity not attributable, directly or indirectly, to the…

Original Issue Discount (OID): How It Works in Debt Financing

9 June 2026

Original issue discount, or OID, is the difference between the stated principal of a debt instrument and the price at…

Knock-Out Options in Private Equity: What They Are and How They Work

31 March 2026

A knock-out option is a derivative contract that terminates automatically if the underlying asset touches a pre-agreed barrier level before…

Partial Recourse Guarantees in Private Equity Financing: Key Terms and Risks

25 February 2026

A partial recourse guarantee is a contractual undertaking by a guarantor to satisfy specified liabilities of a borrower only to…

Negative Synergies in M&A: Why 1+1 Can Equal Less Than 2

18 February 2026

Negative synergies are value losses created by combining two businesses, not the absence of benefits, but active deterioration in cash…

Net Debt Adjustments: How Small Tweaks Can Move Deal Valuations

16 January 2026

Net debt adjustments are contractual mechanisms that reclassify cash, liabilities, and obligations to determine the final equity price in M&A…

IP-Backed Financing in Private Equity Deals: Structure, Use Cases, Key Risks

11 December 2025

IP-backed financing in private equity refers to debt or preferred capital where intellectual property serves as primary collateral, encompassing everything…

Private Credit ETFs Explained: Structure, Risks, Returns

24 October 2025

A private credit ETF is an exchange-traded fund that aims to deliver private lending-like returns with daily liquidity. Because the…

Cost Overrun Facilities in Project Finance: Full Guide

28 September 2025

What are Cost Overrun Facilities? A cost overrun facility is a committed source of pre-completion funding sized to cover construction…

Conflicts of Interest in M&A

10 September 2025

Why Due Diligence Matters Due diligence is one of the most critical stages in any merger or acquisition (M&A). It…

Due Diligence in M&A: A Complete Guide

9 September 2025

Due diligence (DD) is one of the most critical stages in mergers and acquisitions. It gives the buyer a chance…

Tokenized Real Estate Market Outlook And Investor Risks

29 August 2025

The Promise Behind the Tokens Real estate tokenization has been pitched as a way to turn property ownership into digital…

Real Estate Debt Fund Growth Trends And Investor Risks

25 August 2025

What Is a Real Estate Debt Fund? Commercial real estate financing is experiencing a significant shift. As traditional banks step…

Yield-to-Maturity in Private Credit: What Investors Need to Know

30 May 2025

What is Yield-to-Maturity in Private Credit In traditional finance, yield-to-maturity (YTM) is a fixed-income staple — a measure of expected…

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