Jason Thomas is the Managing Director and Head of Global Research at Carlyle. Thomas is also the Chief Investment Officer for managed accounts and adviser to the firm’s Global Private Equity and Credit Investment Committees. 

Before joining Carlyle, he served on the White House staff as Special Assistant to the President and Director for Policy Development at the National Economic Council. He was also the Primary Adviser to the President for public finance.

Deal Talk events are regular fireside chats with leading global private equity dealmakers and industry experts. For past episodes, visit our dedicated page.

‍Key highlights from the Deal Talk: Macro Edition with Jason Thomas

‍Lessons from the SVB collapse - Banks thought that certain assets were almost entirely risk-free but the downfall of SVB bank illustrates how a sudden increase in interest rates carries a possibility of embedded losses. 

‍Financing deals in a high-interest rates environment - As banks became less willing to underwrite debt to finance private equity buyouts, private creditors are stepping in to fill the void. 

‍Mezzanine debt on the rise - Mezz financing, a type of debt, situated in a company’s capital structure between senior debt and equity, is making a comeback, offering yields up to 16%. 

Focus shifts from growth to profitability - Over the course of the past year, investors have become more concerned with the margins and less focused with topline growth which was the key market theme when money was cheap. 

‍Economic forces creating opportunities for private investors - Given the current market dislocation, we can expect an increase in distressed opportunities. Private equity is well-placed to “swoop in and make purchases when the market has liquidity issues”.