Axial Radar: Rates & Bankruptcies

Dani Forman
April 8, 2022

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Happy Friday and welcome to another edition of Axial Radar!

Lots of ink was spilled this week covering the Fed’s decision to speed up the pace of their previously announced interest rate hikes. Inflation has run so rampant, that most officials believe rates will rise north of 2% before the end of the year.

After living in an almost interest-free environment for the better part of two years, you’d think that this news would mean death-by-bankruptcy for businesses still struggling to get on stable footing. And yet, bankruptcy filings have remained at all time lows through the first quarter of this year. In this week’s featured Industry Trends article (scroll to the bottom of the newsletter), we take a look at why bankruptcies and defaults are projected to remain at historic lows, despite the increasing cost of capital.

Our featured members this week include three LMM-focused private equity firms, a leading construction and engineering consulting company, and a strategic M&A advisory firm.

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2022 Add-On Acquisition Survey

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We thank you in advance for your participation and look forward to sharing the results on the current state of add-on acquisitions in the LMM.

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Featured Members

	InterAlpen Partners Private Equity Firm InterAlpen Partners is a US based, globally minded growth private equity firm with a mission to combine profitability and purpose. For over 20 years, InterAlpen has been helping to drive growth in innovative technology companies addressing some of the world’s biggest market opportunities and challenges. InterAlpen’s focus areas include financial services / fintech, healthcare / healthtech, and business services / software sectors. Example portfolio companies include SpaceX, Liqid, and Forge. View Profile

	PSMJ Resources, Inc. M&A Advisory Firm PSMJ Resources, Inc. is the world’s leading authority, publisher, and consultant on the effective management of architecture, engineering, and construction firms. PSMJ has offices in the United States, the United Kingdom and Australia, and offers over 150 titles in book, audio, and video format. View Profile

	Mill Point Capital Partners Private Equity Firm Mill Point Capital is an operationally oriented private equity firm focused on control investments in lower middle-market companies in North America across the industrials, business services and IT services sectors. To date, Mill Point has raised $1.4 billion of cumulative capital commitments. View Profile

	Warp & Weft Strategic Partners Consultant Founded by Elijah Pfister, Warp & Weft Strategic Partners works with companies to provide market and data-driven insights and perspectives that enable them to better understand their business and the industries they compete in. W&W’s services include strategic planning, business development, corporate structure and management, industry analysis and benchmarking, partnerships, joint ventures and M&A. View Profile

	Balsam Bay Partners Private Equity Firm Balsam Bay Partners is a private investment firm focused on small to medium sized acquisitions. The firm partners with exceptional companies seeking the next stage of growth. Post acquisition, the Balsam Bay team works closely with their portfolio companies to drive measurable value for all stakeholders. View Profile