The financial crisis of 2007-2008 was a watershed in global finance and resulted in an entirely new environment for private equity. It is no exaggeration to say in the world of private equity there are now two distinct eras: before the crisis and after it. What was considered conventional wisdom before the crisis is now largely in doubt and our world is disturbingly less predictable.

This situation is no less true for the lending environment than it is for any other part of our industry. This is the first of two double-issues on the effect of the financial crisis on mezzanine and distressed debt funds. In this issue, Front Line examines this question in the context of paid-in to committed capital (PICC) ratios to seek explanations for some counterintuitive behavior. As always, Pevara data enables such analyses, among many others, and can provide LPs with greater understanding of our complex and evolving industry.

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