How would you characterize the quality of 2Q23 deal supply? One of the main challenges that middle market lenders have faced this year is finding high quality deals. According to Refinitiv LPC’s 3Q23 Middle Market Outlook Survey’s preliminary results, 20% of lenders characterize the 2Q23 supply of deals as having poor quality, while 44% said…
Conditions right for further private debt growth in Asia Although the number of private debt funds raised in Asia from 2020 to 2022 decreased from 47 to 38, aggregate capital raised increased from $8.23bn to $12.15bn. The number of funds raised remained consistent throughout the pandemic…. Subscribe to Read MoreAlready a member? Log in here...
“Leveraged loan default rate rises to 14-month high in May” “US loan default rate hits 3-year high“ “Defaults in private credit averaged 5.9% in 1Q, law firm says” Everywhere you look these days industry rags are filled with talk about looming loan defaults. For anyone who’s been a practitioner or observer of the debt capital…
So far in 2023 payment defaults in direct lending portfolios.
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield and US Bureau of Labor Statistics The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that…
Year-to-Date Default Volume, Count Contact: Kelly ThompsonKelly.thompson@kbra.com
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
When we began our career in the middle market four decades ago, we could not have anticipated its transformation to private debt, the hottest asset class in capital markets. Back then being a lowly vice-president dedicated to smaller… ▶︎ Read June 12 2023 newsletter: here ▶︎ Chart of the Week: here (by Bloomberg L.P., 31 […]
A decent start in the middle market Download PitchBook’s Report here. The middle market got off to a decent start in 2023, though quarterly activity has mostly stalled since the 2021 boom. PitchBook’s just-released US PE Middle Market Report registered $107 billion in Q1 investments, continuing a smooth trend of about ~$110B per quarter since Q4…