Investors today are faced with mixed signals. November’s impressive labor report of 266,000 job gains went a long way to easing fears of an imminent recession. But with buoyant markets brought fresh bubble fears: Are prices overinflating? Are valuations headed for a bigger fall down the road? And won’t terms and structures continue to weaken […]
Yields bifurcate within the single-B category Investors took a cautious approach and became more selective in the latter part of 2019. In turn, the yield premium between double-B and single-B rated issuers widened significantly. The bifurcation has also trickled down into the single-B category as there has been a wide differential between higher-rated B1/B+ issuers…
2020 prediction – more VC-to-PE buyouts Download PitchBook’s Report here. Our 2020 Private Equity Outlook went out last week, and we’ll delve into some of our predictions as we roll into the new year. One trend we expect to see more of is VC-to-PE buyouts. Though they’re often mentioned in the same sentence, venture capital and…
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…
North America Private Debt Set to Hit $500bn The North America-focused private debt market has seen a slowdown in 2019. As of December, 58 funds focused on the region had closed, raising a combined $40bn. This is significantly down from the 118 funds that secured $74bn in 2018, and is the lowest fundraising year since…
Despite conventional wisdom, investors want more GPs The biggest question isn’t around whether LPs want more GP relationships. The question is, is this good for first-time managers? In a data set that could be rather friendly to first-time managers, almost five times as many investors want to increase the number of GPs they work with…
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com