In early 2020, just before Covid came crashing down on our heads, we were in the middle of a Lead Left series called “Ten Top Myths About Private Credit”. Myth #5, published on February 20, was “No one uses mezzanine debt anymore.” We felt compelled, after a decade of increasingly aggressive senior and unitranche financings,…
Almost two decades of data show strong junior capital returns relative to other credit.
Investors flock to the middle As previously highlighted by Lead Left, and supported by our fundraising data, junior capital strategies are becoming increasingly popular. In last week’s version of the “Case for Junior Capital”, Lead Left drew attention to some of the positive characteristics of this type of investment in today’s environment including healthy cash/equity…
Distribution of MFN Maturity Carveout Horizons (Past performance is no guarantee of future results.) Contact: Steven Miller
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
Fundraising slowdown Download PitchBook’s Report here. Fundraising is in a slowdown, according to PitchBook’s US PE Breakdown. Through H1 2023, about $153 billion has been raised across 160 funds. Compared to last year, those paces are about 25% slower and 15% slower, respectively…. Subscribe to Read MoreAlready a member? Log in here...
We continue our discussion this week on why private mezzanine is going from strength to strength amid current economic and market conditions. “We did zero mezzanine deals last year,” one junior capital provider told us. “This year we’ve already done half-a-dozen… ▶︎ Read July 17 2023 newsletter: here ▶︎ Chart of the Week: here (by […]
This space has covered at length the investor-friendly changes in senior debt terms since the Fed began its rate hiking regime in March 2022. We recently spent time speaking with junior capital providers about the state of mezz terms today. “Junior capital spreads have widened out 50 to 100 bps from the end of last…
All-in yields of second-lien loans have risen to keep pace with first-lien upswings.