Publicly-traded investment bank Houlihan Lokey has formed HL Finance LLC to arrange senior secured leveraged loans for private equity-backed, privately-held, and public corporations.
HL Finance will act as the arranger on syndicated loan transactions and has entered into an agreement with HPS Investment Partners, as its initial strategic investor, to participate in the transactions and provide underwriting commitments of up to $1 billion. HPS Investment Partners (formerly Highbridge Principal Strategies), is a New York-based private equity firm specializing in debt and mezzanine investments (www.hpspartners.com).
HL Finance will pursue both committed and best efforts transactions of at least $50 million for leveraged buyouts, acquisitions, dividend recapitalizations, and refinancings. Borrowers will typically have EBITDA of at least $40 million.
“The creation of a syndicated leveraged finance platform leverages our core advisory capabilities and relationships and combines them with the credit underwriting and portfolio management strengths of market-leading asset managers. Importantly, this initiative is driven by significant client demand and is consistent with our advisory business model,” said Scott Beiser, CEO of Houlihan Lokey.
HL Finance will operate as part of Houlihan Lokey’s Capital Markets Group which is led by Global Co-Heads Chris Dunlop, Anthony Martino, and Gregg Newman. As part of the new HL Finance strategy, last September the group hired two structuring and syndication professionals, Matthew Lyness and Ed Ribaudo, both former managing directors at GE Antares in New York. The group now consists of 35 professionals and last year raised approximately $12.5 billion in capital across 40 transactions.
“We are very excited about the continued growth of our Capital Markets Group and believe this new capability, combined with our deep expertise across industry sectors, substantially increases the opportunity to support our clients’ needs,” said Scott Adelson, Co-President and Co-Head of Corporate Finance.
Houlihan Lokey’s Capital Markets Group has acted as an underwriter, an agent, or a strategic advisor for a variety of transactions, ranging from leveraged loans, private mezzanine debt, and high-yield debt to structured equity, private equity, PIPEs, convertibles, and IPOs. The group has offices in New York, Los Angeles, Houston, London, Madrid, Milan, and Sydney.
Houlihan Lokey (NYSE:HLI) is an investment bank that provides mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting services. The firm is headquartered in Los Angeles with offices across the United States, Europe, the Middle East, and the Asia-Pacific region (www.HL.com).
© 2018 Private Equity Professional | July 23, 2018