10% of industries account for 60% of add-ons Download PitchBook’s Report here. An upcoming project unearthed an interesting trend around add-ons: Over 60% of them are done by 10% of the industry codes tracked by PitchBook. Sectors like insurance and healthcare clinics are severely fragmented, which gives PE investors an opportunity to put the buy-and-build model…
US sponsored middle market direct lending activity stayed robust in 3Q22 Last quarter, there was US$35.1bn of US sponsored middle market direct lending volume, 17% higher than 2Q22’s levels and the most since 4Q21’s record US$55bn level. The direct lending market remained quite busy in 3Q22, in contrast to the broadly syndicated market which slowed down…
Managers could face 16% increase in cash-flow challenged issuers next year Portfolio managers are potentially facing a 16% rise in the number of borrowers that cannot generate enough cash flow to meet interest expenses by the end of 2023, based on an analysis by KBRA DLD’s new parent, Kroll Bond Rating Agency (KBRA). The analysis…
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com
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…
Percentage of New Issue First Lien Loans that Cleared with a J. Crew Trapdoor (Past performance is no guarantee of future results.) Contact: Steven Miller
European direct lending boom sees American dominance decrease A record-breaking number of direct lending funds have closed in Europe this year, a sign of the increasingly global reach of private debt. North America remains the biggest private debt market but has seen its proportion of funds closed globally drop to 53%, down from a high…
This week we continue unpacking the rich content our three top economists provided for last week’s exclusive webinar [link]. Here are some key takeaways. Nominal GDP remains relatively high in the US, with greater growth reflected in higher corporate revenues and earnings. But real GDP is zero. 3Q is likely positive, thanks to a narrowing…
Attendees of our economics October 19 webinar are widely spread in their rate expectations.