Why PE Firms Use Netrex
Many of the largest private equity firms employ a full-time “Capital Markets Partner” who can more efficiently manage and oversee new LBO financings as well as portfolio company financings (add-ons and refinancings). For smaller PE firms, they generally do not have enough deal volume to justify this role, so deal team members are tasked with handling the financing for their deals. While PE firms are very successful at acquiring companies, the process of efficiently borrowing capital is arduous and time-consuming. Due to the time and amount of work involved, PE firms tend to work with the same group of lenders on most of their deals, which may not always lead to the most optimal financing outcome.
As Netrex’s entire business is focused on debt advisory and capital arranging, we are constantly following the latest market trends, pricing and terms, and interacting with our extensive lender network to identify which lenders are the most aggressive, competitive and creative. This focus allows Netrex to act as an “outsourced” capital markets partner and run a highly competitive and comprehensive “financing process”, which has ultimately saved our PE clients a significant amount of time and money. Our services off-load work for our clients, increase deal certainty, and have ultimately resulted in the most optimal pricing, terms and structure. We allow our clients to spend significantly more time managing their portfolio companies and finding new deal opportunities.