This week in our continuing special series on private credit myths, we come to: Myth #3: “We’re late in the cycle, so loans now are risky.” For issuers one of the virtues of private credit is being available when public markets aren’t available. Buy-and-hold private credit managers have locked-in capacity. Since the assets are not […]
Combined AUM approach US$800bn for US CLOs and retail loan funds US CLO assets under management (AUM) have climbed to US$677.24bn in January after a 15% increase last year to US$673bn. Roughly 60% of the assets are in CLOs with a 2017 or later vintage with 8% of assets in vintages from 2014 to 2016….
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com
DL Deals: ACProducts Deep Dive KKR Capital Markets used hard call premiums starting at 103 on ACProducts, a B/B2 credit that had more of a hybrid distribution strategy this month, to protect the attractive L+650 spread from being taken out quickly via repricing. The move is reminiscent of Qlik Technologies in 2016, however today’s repricing…
The humbled FoF market Download PitchBook’s Report here. We’ve wondered before if funds of funds are becoming obsolete. Perhaps a hyperbolic word choice but probably only a couple standard deviations from the truth. FoF fundraising has nosedived over the past decade, as has its industry clout. Our most recent overhang numbers, dissected in PitchBook’s just-released Private…
Average Adjusted Leverage Through F&C for M&A-Driven Loan Deals Contact: Steven Miller
Here are the next two fables in our continuing special series on myths of private credit: Myth #5: “No one uses mezzanine debt anymore.” As we detailed over four years ago (link), private sub debt regularly gets kicked around at conferences for being “dead.” This has particularly been the case since the advent of the…