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Happy Friday and welcome to another edition of Axial Radar!
Get ready to wave the days of rock bottom interest rates goodbye. Earlier this week, the Fed sent their first clear signal in over two years that interest rates could begin to rise again starting in 2022. Regardless of whether you agree with the Fed’s recent credit policies, it’s clear that the sustained low interest rate environment that we’ve been living in has ignited a buying spree for everyone from aspiring homeowners to PE professionals.
Evidence of this activity is clear in the volume, value, and debt/EBITDA ratios of US PE deals that have been done so far in 2021. Unsurprisingly, all three of those categories broke records. In this week’s featured Industry Trends article, we’ll take a look at the potential ramifications of the increased leverage in PE deals and the additional pressure that puts on the underlying businesses to perform in the long term.
Our featured buy-side members this week include a 37 year old investment firm, a holding company that acquires and grows eCommerce DTC brands, and a credit union service organization. On the sell-side we’ll introduce you to a boutique strategic advisory firm and a LMM-focused M&A advisory firm.
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