Uptick in ‘hybrid’ financings comes as other investors shun riskier debt amid market volatility
Private lenders including Apollo and Ares have been stepping in to prop up corporate bond deals in public markets as other investors back away amid volatility that has crushed the volume of riskier debt sales this year.
Ares Management provided $2bn of the debt to back Brookfield and Elliott Investment’s $16bn buyout of consumer data company Nielsen Holdings in April, after plans to go entirely to the public bond market came unstuck, according to people familiar with the deal.
Brookfield is also borrowing nearly $900mn from Goldman Sachs Asset Management’s private credit arm for its roughly $8bn acquisition of software company CDK Global, according to people briefed on that transaction.
Read more: FT
