The financial markets have been buoyant for four years and although many commentators predict a downturn, it does not seem to be approaching any time soon.
As the restructuring market has slowed, law firms have experienced growth in their capital markets teams with the collateralised debt obligation and commercial mortgage-backed securitisation markets in Europe occupying a large portion of the market.
The growth of the private equity industry has had a real impact on the financial markets and how deals are structured. The covenant-lite trend, which is examined in this report, has travelled from the US, where including very few financial covenants in deals has been common for some time.
Innovative deals in Europe such as Apax’s acquisition of Word Trader Directories and the VNU World Directories refinancing, which were both covenant-lite, have made a big impact in the market.