The Distressed Debt Report - January 21, 2006

The lending market for small companies may be entirely reliant on private equity for its growth. And heading into 2006, private equity firms are having difficulty exiting investments. Full Story

Some mezzanine fund managers and their investors are expressing concern that the government may cut back its Small Business Investment Company debentures program, but advocates insist it is stable for the immediate future. Full Story

• Lincoln Merges With German-based Peters
• Monomoy Uses 'Friendly Foreclosure' for $20M Management Buyout
• Citigroup Building Advisory for Middle Market Business Owners
• Fifth Street Closes $157M Mezzanine Fund
• BIA Raising $150M for Media, Telco Companies
• Perseus Raising Mezzanine Fund
• Hercules Lends $10M to Biotech Company
• Laurus Loans $6.87M to Creative Vistas for Acquisition
• Events
• Hirings and Firings

Some 17% of money lent to middle market companies last year was used for acquisitions, according to a recent market survey, up from 8.7% in 2004. The increase in M&A lending was the biggest change found in market surveys of what loans were used for by middle market companies. The survey was produced by Standard & Poor’s Leveraged Commentary & Data. The research firm defines a middle market company as one with annual EBITDA of $50 million or less. Full Story