We began our special series by dispelling the notion that privates should mimic publics. This week we tackle: Myth 2: Private equity valuation processes lack objectivity and transparency, which inflates values compared to public counterparts… ▶︎ Read Apr 24 2023 newsletter: here ▶︎ Chart of the Week: here (by Lincoln International) (Any “forward-looking” information may […]
Source: VanEck BDC Income ETF and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF (BIZD) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
Subordinated debt bucks fundraising trend The strategy appears to be claiming market share as fundraising shows signs of coming under pressure. Largely as a result of the denominator effect, but also due to investors taking stock of a challenging economic and geopolitical situation, it was always feared that 2023 might turn out to be a…
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com
Distribution of Synergies & Cost Savings EBITDA Addback Time Horizons (for Actions Resulting in Addbacks) (Past performance is no guarantee of future results.) Contact: Steven Miller
US institutional primary yields widen to 10.26% in 2Q23TD After plummeting in March, activity has picked up in the institutional market. However, issuers are facing higher yields on average so far this quarter. After a huge jump in 3Q22, average yields were relatively flat in the last two quarters, as higher base rates were compensated…
Corporate M&A multiples have eased Download PitchBook’s Report here. Corporate M&A multiples have eased to decade lows, according to PitchBook’s Q1 2023 Global M&A Report. Last year’s multiple settled at 8.5x, down from 10x in 2021. A quarter into 2023, multiples continue to drop, now down to 7.7x. It’s only three months’ worth of data, but…
Mezzanine debt fundraising boosted by megafunds Mezzanine debt fundraising picked up momentum in the first quarter of 2023, accounting for 65% of total private debt raised in the period. Mezzanine funds raised $20.7bn in Q1 2023, boosted by the closes of Goldman Sachs Asset Management’s Mezzanine Partners VIII fund on $11.7bn and Crescent Credit Solutions…