Latham’s Private Capital Insights Report Analyses Trends Set to Shape 2023

Latham & Watkins is pleased to announce the release of the latest edition of Private Capital Insights, an in-depth report examining the key global trends and hot button issues impacting capital investors, lenders, sponsors, and other market participants across a range of asset classes and private capital strategies.

The report discusses the continued global rise of direct lenders and examines how private credit funds are deploying new, innovative capital solutions to support increasing deal sizes. The publication also explores a number of other significant market developments, including: how private equity sponsors are adjusting to the market environment with creative deal structures designed to share risk, the growth of ESG-linked fund facilities, and the recent boom of fund investments into global sports assets.

Private Capital Insights covers a range of topics which will continue to shape the market in 2023:

Sports – Private capital enters the arena on both sides of the Atlantic as leagues seek to attract private fund investments.

Private Equity – Sponsors remain active while adjusting to the unsettled financial markets.

Special Situations and Stressed / Distressed – Special situations and distressed activity picks up as pressure mounts on debt issuers in a number of sectors.

Fund Finance – The emergence of energy transition funds, ESG-linked fund finance facilities, and the continued importance of NAV facilities.

Direct Lending – Private lenders continue to increase market share and sustain dealmaking around the globe, as junior financing and annual recurring revenue lending scale up.

"After strong growth in recent years, 2022 has proven to be another hugely significant year for private capital,” said Yen Sum, London partner and Global Chair of Private Capital at Latham & Watkins. "Despite a challenging economic and geopolitical environment, private funds have continued to demonstrate their value and resilience on the global stage, deploying increasingly creative structures and capital solutions to successfully navigate — and in many cases thrive — amidst a choppy and differentiated market."

"We continue to see significant opportunities for private capital investors across our global practices,” added Washington, D.C. partner Paul Sheridan, who also serves as Global Chair of Private Capital. "With private credit funds playing an increasingly prominent role in corporate lending and shifting macroeconomic conditions continuing to present opportunities to nimble investors including in the private equity and infrastructure space, we expect private capital’s influence in every sector of the economy to grow strongly in the year ahead."

Latham's market-leading team advises investors, lenders, sponsors in structuring, evaluating, committing capital to, managing, and realising the myriad of investment opportunities across global markets and industries. The firm leverages the practice’s formidable depth of expertise in the US, Europe, the Middle East, and Asia to seamlessly advise market participants on all aspects of their business in deploying private capital, from fund formation, fundraising, and regulatory matters to analysing, structuring, and executing transactions and portfolio management.