Tips for deal origination in the debt capital markets

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The debt capital markets are hot. According to a recent S&P report, “the amount of global debt from financial and nonfinancial corporates rated by S&P Global Ratings grew by 6% from Jan. 1, 2019, to $20.6 trillion as of April 1, 2020. Since the beginning of 2019, the amount of U.S. corporate debt has grown by 10%, outpacing the 2% growth of European corporate debt. As the global capital markets and the dealmakers that close transactions continue to face Covid-19 related uncertainties, many are looking to long-held relationship, data, and technology to help originate quality debt capital markets (DCM) deals.

 

There are many ways leveraged finance and credit professionals can use DealCloud’s leveraged finance software to source deals. By creating a single source of truth for all information regarding deals, relationships, and data, DealCloud has enabled leveraged finance market participants to operate more efficiently and strategically when sourcing and executing on debt deals.

 

One leading best practice  is leveraging the Direct Sourcing dashboard in DealCloud. By configuring this dashboard, users can view and organize their target companies by category or tag. In doing so, lenders can sort and view companies by stage (i.e. initial lead, intro call, deal expected, etc.), companies by team member, and more.

The Direct Sourcing dashboard also enables users to see a holistic and historic view of their sourcing and origination efforts over time. This is vitally useful for the leadership at credit and leveraged finance firms. 

 

The DealCloud platform brings many elements together to simplify the leveraged finance deal sourcing process for professionals working through the complexities of the credit markets.

Leverage technology to help develop relationships

With competition and dry powder more prevalent than ever, it’s critically important for professionals in the debt capital markets to keep their strategies close and their relationships closer. Because of the increasingly complex nature of these relationships, Rolodexes and spreadsheets are no longer the best tool for the job. Firms are tasked with developing relationships with a wide array of professionals and firms at every stage of the transaction lifecycle. Without the right technology platform in place, leveraged finance and credit professionals are at risk of losing connections or letting relationships grow stale. DealCloud’s leveraged finance software is essential for relationship management because it centralizes communication data and helps firms transform average day-to-day activities into actionable relationship intelligence when sourcing leveraged finance deals. 

Leveraging the Lender Network dashboard in DealCloud’s leveraged finance software is just one of the ways users can put their relationship data to work. In DealCloud, credit professionals can see a full view of co-investors and fellow deal participants.   Easy-to-use filters allow lenders to view firms based on strategy, institution type, as well as the  stage lenders are at in the deal process.

This dashboard in DealCloud enables you to keep track of your network, which is vital when sourcing leveraged finance deals.

 

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Connecting more than just banks and professionals

In order to stay competitive in today’s modern deal-making landscape, credit and leveraged finance professionals are orienting their key decision-making activity around a combination of proprietary and third-party data. DealCloud DataCortex is an integrated data solution that allows you to manage proprietary and third-party data all within the DealCloud platform, empowering you to transform that data into institutional knowledge. 

 

DataCortex enables you to make critical decisions more quickly and identify new, meaningful opportunities when sourcing leveraged finance deals. With DataCortex, you can easily run complex reports, analyze industry trends, and evaluate potential synergies in the same hub where you originate deals and manage relationships.

 

Professionals in the leveraged finance market are always looking for ways to improve efficiency and processes across all areas of their business. After all, a speedy response or bid can be the difference between a closed deal and a dead deal. 

 

The DealCloud platform connects disparate data sets across systems, operationalizes processes for optimal efficiency, and redefines what your firm can accomplish in a single day. This allows leveraged finance professionals and their firms to accelerate profits, mitigate risk, maintain a competitive stature in the market. 

 

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Sourcing Leveraged Finance Deals Through DealCloud Software

The leveraged finance professionals who will sustain clear competitive advantages in the debt capital markets will be those that leverage and embrace the transformative potential of technology to improve operational efficiency, adapt to changing conditions, and executive on their differentiated strategy. There are many reasons why DealCloud’s leveraged finance software is a compelling option for any firm that is looking to institutionalize their deal and relationship processes, and DealCloud has a proven track record for centralizing firm-wide intelligence and transforming it into the proprietary insights your firm and people need to grow. To find out how you can better source leveraged finance deals in the debt capital markets, schedule a demo with the DealCloud team.

 

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Author:

Olivia Simons

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