Industrials lead private debt deals in North America A month into 2023, industrials are the dominant sector among private debt deals in North America with 10 deals out of 36 deals in total (28%), a three-deal lead over consumer discretionary. Activity in the sector is consistent with previous years, as industrials deal numbers generally occupy…
Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index…
Inflection points are often apparent only in hindsight. While it’s premature to call a top to the current rate and inflation cycle, signs are evident that change is underway. Last week’s Fed rate hike of 25 bps, a deceleration from its previous three monthly moves, is a case in point. At 4.50-4.75% we are within…
Secondary BSL bids are edging up in concert with optimism in public equities.
Direct lending stays in favour with LPs With few signs of trouble emerging the strategy is still going strong, but for distress the outlook is more mixed. Direct lending strategies remain top of the shopping list for investors in private debt, with 47 percent of LPs planning to invest more in those strategies during 2023…
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
Leveraged loans & HY bonds post gains in secondary market to start 2023 Source: Debtwire Par The new year kicked off with positive news from the Bureau of Labor Statistics, reporting on 6 January that the unemployment rate had fallen to 3.5% during December, and that 223,000 jobs were added to the workforce. Loans and bonds…
A big drop for small funds Download PitchBook’s Report here. Another 193 middle-market funds closed last year, according to PitchBook’s latest US PE Breakdown. Collectively the funds are worth $161.5 billion—both figures being in line with prior years. But fundraising at the smallest end of the market didn’t fare as well. Among funds of $200 million…
