Thank you for the question. Leveraged Finance or LevFin is an area with the investment banking department. The LevFin team would usually provide a corporation or a private equity fund with credit that is used in leveraged buyouts (LBOs). These loans are usually much larger than normal ones, e.g. in a typical LevFin deal, the investment bank would finance as much as 90% of the project. Another instance at which IBs engage in crediting are bridge loans. Bridge loans are short-term credit that is provided in times when long-term credit is not attainable, but will be in the future. Think about an M&A deal in which company A is acquiring company B. Company A needs 10mil in cash, in order to complete this cash/equity deal. Bank X promised to provide A with a long-term loan only if A manages to acquire B. So things would happen this way: 1. The investment bank working for A would give A a bridge loan of 10 mil. with a term of say 3 months. 2. A acquires B with the 10 mil from the loan and its own equity 3. Bank X provides A with the a 5 year, 10 mil loan. 4. Investment bank gets the money back and deal is completed This topic and much more are covered in 'The Complete Investment Banking Course 2017' that we offer on Udemy. www.udemy.com/the-complete-investment-banking-course-2016/ Cheers!
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very nicely explained. waiting for some more interesting videos on IB. thank you!
Fab videos thank you :) We are still waiting and wishing for the next two parts
Thank you...for the information .its valuable..when are you uploading for Trading & Advisory and Asset Management.
well explain its simple and concise
Very insightful video
Keep it up 👍
Where can I find the video about “ the mechanics of M&A services “, what you mentioned in this vid?
As college student going into the IB field, your videos have been extremely insightful. Thank you.
are u an Investment Banker now?
Schtabiel www.linkedin.com/in/jason-nieh/ he’s a financial analyst at a law firm
I give yo five stars
Please make video on career in valuations
Eagerly waiting for video on valuation technique
How about the creditor side investment banking? Is that also a common service provided by investment banks?
Thank you for the question.
Leveraged Finance or LevFin is an area with the investment banking department. The LevFin team would usually provide a corporation or a private equity fund with credit that is used in leveraged buyouts (LBOs). These loans are usually much larger than normal ones, e.g. in a typical LevFin deal, the investment bank would finance as much as 90% of the project.
Another instance at which IBs engage in crediting are bridge loans. Bridge loans are short-term credit that is provided in times when long-term credit is not attainable, but will be in the future. Think about an M&A deal in which company A is acquiring company B. Company A needs 10mil in cash, in order to complete this cash/equity deal. Bank X promised to provide A with a long-term loan only if A manages to acquire B. So things would happen this way:
1. The investment bank working for A would give A a bridge loan of 10 mil. with a term of say 3 months.
2. A acquires B with the 10 mil from the loan and its own equity
3. Bank X provides A with the a 5 year, 10 mil loan.
4. Investment bank gets the money back and deal is completed
This topic and much more are covered in 'The Complete Investment Banking Course 2017' that we offer on Udemy.
www.udemy.com/the-complete-investment-banking-course-2016/
Cheers!
Where can I find links for next 2 videos ? can anyone help me out ?
Piyush Gaur hi! They are in our investment banking course on Udemy
@@365FinancialAnalyst hi. I'm sorry can you give us the link for the other 2 videos please? Thank you.
Very insightful video
A thoroughly informative presentation. I was wondering if you could say more about how the investment banks price their advise?