Buyout firms typically extract profits from the companies they acquire by taking them public or selling them. In a world with zero interest rates, they’re finding it easier than ever to cash in through the debt market.
Babson Capital Management LLC, the investment firm owned by Massachusetts Mutual Life Insurance Co., raised $917 million for its first U.S. mezzanine and private-equity fund since the financial crisis.
Valeant fell 3.5 percent yesterday, the biggest drop in two months and for its eighth consecutive day of declines, during which it has lost 10 percent. The stock now trades below its price on the day Valeant announced its bid for Allergan, which won’t help its cause.
Since the last commercial supersonic flight 11 years ago, the world has accelerated in every respect but one: Instead of increasing speed, airlines have focused on driving down costs by commissioning ever-bigger planes crammed with ever more people. In 2003, for example, a Boeing 747-400 configured for three classes could carry 416 passengers; today’s Airbus A380 can accommodate 525.
American International Group Inc., the largest property-casualty insurer in the U.S. and Canada, joined private-equity firm Oak Hill Capital Management to help start a lender serving medium-sized companies.