Total leverage on sponsored MM deals inched down in 4Q24, driven by lower junior leverage Total leverage on sponsored middle market deals inched down to 4.70x on average in 4Q24, driven by lower junior leverage. First-lien leverage came in at 4.48x in 4Q24, up from 4.46x in 3Q24, while junior leverage declined to 0.22x from…
Allocations on the up As a relatively young asset class, private debt still has plenty of room for bigger LP commitments. Insurers are leading the way. You don’t have to look too hard in the financial press to find commentary suggesting that insurance and private credit are a match made in heaven given the way…
Direct lending’s share of buyout financings now dwarfs that of the bank market. Source: LSEG LPC
Next up is the second of our five themes for the year ahead: “A busier market: Providers of creative and flexible capital solutions will find favor.” As a brightening macro picture releases pent-up demand for private capital dealmaking – there was $2.6 trillion of dry powder among global buyout and venture capital firms waiting in the…
In a world fraught with macroeconomic uncertainty, geopolitical turmoil, and evolving capital markets, LPs must take a consistent, balanced, and tailor-made approach to portfolio construction. As we have seen, a distribution dilemma can create long term program issues for investors beyond an immediate liquidity shortfall. Tools are available to get cash in the door today […]
Twin peaks: loans and bonds hit new milestones in 2024 Loan issuance reached new heights in 2024. The Americas added USD 1.02trn in 4Q24 for a full-year total of USD 3.8trn, the highest number recorded in Dealogic’s database. The volume surpassed the previous high of USD 3.5trn posted in 2021. FY24 volume gained 49% year-on-year (YoY), despite a…
Top Bookrunners Drive 2024 US Leveraged Loan Volume Amid record issuance in the leveraged loan market in 2024, where institutional issuance exceeded $1.33t, Bank of America was the most active bookrunner, participating in 953 US leveraged loan deals with an annual credited bookrunner volume of over $172b. Following BofA was JP Morgan at $167b across…
TTM Default Volume, Count (Past performance is no guarantee of future results.) Contact: Eric Rosenthaleric.rosenthal@kbra.com
Hurdle and carry rates climb for riskier private debt strategies Read more in ‘Preqin 2025 Global Report: Private Debt’ Incentive payments to private capital GPs have two main variables, the hurdle rate and carried interest…. Subscribe to Read MoreAlready a member? Log in here...
Launched Volume Source: LevFin Insights New-issue Yields Source: LevFin Insights Weekly Fund Flows Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenbergrobert.polenberg@levfininsights.com