The US market is ‘white hot’ The world’s most mature private debt market is a hive of activity as it shakes off the effects of the health crisis. More than 12 months on from the pandemic-induced slump in sentiment, the US private debt market is in rude health – “white hot and hotter than it…
Middle market non-sponsored syndicated volume is at US$12bn so far in 3Q21 Non-sponsored syndicated middle market loan volume is at US$12bn so far in 3Q21, already on par with the total logged in 3Q20. If the current pace continues, 3Q21’s total will be close to 2Q21’s US$29bn, which was the highest quarterly level in 3…
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…
Bigger funds across private capital Download PitchBook’s Report here. Private capital as a whole is enjoying an enthusiastic fundraising trail. PitchBook’s latest Private Fund Strategies Report, available here, covers a range of asset classes, including PE, VC, real estate, real assets, FoF and secondaries. The data shows a pronounced uptick in fund step-ups—or the difference between…
In a recent conversation with a good friend in private credit, a veteran of the industry for many years, he reminded us of the history of one-stop financing. “In the beginning,” he reminded us, “unitranche was a creature of broken markets. It was designed to step in when banks were backing away. Today it’s accelerating…
Unitranche share of 2Q middle market sponsored loans slipped from 1Q, while overall activity jumped.
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com
According to Refinitiv LPC, US unitranche volume came to almost $22 billion last quarter – the highest level they’ve tracked historically. At the same time, one-stop risk/return dynamics have moved in favor of issuers. The average debt/ebitda is now at a record high 5.9x, with all-in Libor spreads hovering around 600 bps. As we told […]
