An obvious alternative to looking for debt financing by banks to leverage acquisitions is to find investors who are willing to pick up the debt stake and organize them in an Originator Debt Fund.
15 May 2009
Mayer Brown White Paper
The current crisis has seen debt funds become popularvehicles for making investments in undervalued debt securities or loans (often referred to as secondary debt funds). While secondary debt will probably remain a very interesting market segment within alternative investments, this paper focuses on handing out loans to borrowers or directly purchasing debt instruments from the issuer upon their initial offering.