TheLeadLeft
The Pulse of Private Equity – 9/23/2019
Usually good but seldom great Download PitchBook’s Report here. PE mega-funds (of at least $5 billion) have tended to outperform smaller funds over the past 20 years. That shouldn’t come as a surprise, as mega-funds are only raised by firms that have outperformed over time. At least for private equity, the biggest firms are almost by…
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And You Thought Cov-Lite Was a Problem
As our faithful readers know, the Lead Left is a keen observer of the heavens. So it’s with great interest that an observatory in Crimea detected an interstellar visitor – a comet called Borisov, that will swing it close the Earth just in time for Christmas. According to one astronomer, “It might behave the same […]
Leveraged Loan Insight & Analysis – 9/23/2019
As Libor declines, Libor floors begin to trickle back As interest rates continue to decline, Libor floors are on investors’ minds once again. As of September 24, the 3-month Libor rate was 2.11%, 69bp below its 2018- year-end level. So far in 3Q19, the average Libor rate is 2.20%, down from 2.51% in 2Q19. If…
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Private Debt Intelligence – 9/23/2019
Private Debt Investors’ Preferences Based on the Preqin’s Investor Update report, private debt investors would have changed their preferences on how and where the best opportunities are presented in the asset class in the next 12 months. Direct lending remains the most sought-after strategy among private debt investors, with almost half (49%) believing the strategy…
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Covenant Trends – 9/23/2019
Average Unadjusted Leverage for M&A-Driven Loan Deals Contact: Steven Miller
PDI Picks – 9/23/2019
A drop in fund closings portends more capital in fewer hands Yet another data point is emerging to showcase how fewer managers are raising an outsized amount of the capital LPs are allocating to the asset class. One of the most prominent trends in private credit today has been that of consolidation. It’s often used…
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LevFin Insights: High-Yield Bond Statistics – 9/23/2019
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com
Debtwire Middle-Market – 9/23/2019
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…
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Take-offs and Landings
Bastille Day is a French national holiday in July with fireworks and parades. This year it was also celebrated in Paris by a “dazzling” test of the Flyboard Air – a jet-powered hoverboard. Its inventor, Franky Zapata, hoped to become the first to cross the English Channel on such a vehicle. So hopes were riding…
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