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Largest PE firms will outperform smaller players in a downturn
May 8th 2019 (7.44mins)
Danielle Reed, Neal Epstein
In this third installment of the Asset Management group’s “Tail Risks” series, Danielle Reed, research writer for the Financial Institutions Group, talks with Senior Credit Officer Neal Epstein about how PE firms are driving risk higher in the leveraged finance world and how these firms have found ways to protect themselves ahead of an eventual economic downturn.​​​
Largest PE firms will outperform smaller players in a downturn
​​The largest PE firms can accelerate the return of cash from leveraged companies they own. In a downturn – when defaults rise – they are more likely than smaller competitors to retain control.​​
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