On the minds of limited partners Our upcoming Fund Leaders’ Survey provides a glimpse into what investors are thinking about the key issues of the day. So what are limited partners really thinking? Multiple answers to that question may be found in the upcoming July/August issue of Private Debt Investor, where we devote a section…
Many direct lenders have oriented their platforms around financing only businesses backed by private equity sponsors. While non-sponsored strategies have certain benefits, the presence of an owner with its own separate track record, select industry experience, and deal sourcing prowess to draft behind, gives relationship lenders distinct advantages. This is particularly true when it comes…
Recent concerns about rising rates and a possible recession has weighed on public equity multiples.
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
BDC portfolio company earnings outlook for 2022 weakens The outlook for BDC portfolio company earnings has weakened in recent months, according to the Refinitiv LPC BDC Outlook June Survey. With companies facing higher costs in the current inflationary environment and heightened fears around slowing economic growth, survey respondents say that the biggest challenge facing BDCs…
What makes for successful portfolio construction in private credit? The issue carries more urgency amid current public market turmoil. Leveraged loans will always be in a non-investment grade risk bucket. Middle market loans, being less leveraged and covenanted, are a more conservative play, but recessions will always test borrowers no matter how creditworthy… ▶︎ Read […]
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com
Average New-Issue Clearing Spreads (Single B) and Covenant Terms for PE-Backed First-Lien Institutional Loans (Past performance is no guarantee of future results.) Contact: Steven Miller
A very slow start for exits Download PitchBook’s Report here. PitchBook’s latest US PE Middle Market Report shows a big drop-off in middle-market exit activity. Only 175 exits were completed in the first quarter, many of which probably started in late 2021. That’s a low number even by pre-COVID standards. When you take out the second…
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…