In the second half of 2020, as COVID-19 lockdowns eased, pent-up demand for M&A and a flood of cheap debt fueled a surge of private equity buyouts. The quantum of capital put to work surpassed even the deal rush preceding the 2008 global financial crisis. ? In 2021, North America buyout volume reached a record USD 521bn, a 116% year-on-year rise. The tide turned in 2022, as interest rates began their upward climb. Many companies acquired via LBOs during the 2019-2022 cycle – and others not involved in M&A yet still carrying significant debt – were quickly beleaguered by over-levered balance sheets and mounting financing costs. ? Oaktree Capital Management, L.P. Capital Management believes these market conditions have provided fertile terrain for its special situations strategy. Check out our latest GP Profile with insights from Matthew Wilson and Jordon Kruse: https://lnkd.in/dR6GfHCy
