Distressed debt and special situations funds show somewhat higher returns than direct lending funds, but carry significantly higher credit risk. Risk/Return by Strategy (Vintage 2003-2013 Funds) Source: Preqin Private Debt Online; sphere size represents market capitalization
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As Investment Activity Slows, Competition for Quality Remains Fierce As March winds down, the first quarter of 2016 currently has seen around 700 private equity deals close in the U.S. Taking the total as 700, that completed deal count represents a drop of nearly 29% from the tally of 4Q 2015, which itself saw the…
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Contact: Timothy Stubbs timothy.stubbs@spcapitaliq.com
Valeant Pharmaceuticals, the most widely held name in U.S. CLOs, announced last week it was cutting its revenue forecast and that a delay in filing its annual report put the company at risk of defaulting on its debt. In response, Valeant’s shares plunged by more than 50%. The company’s loans ended Tuesday with a weighted…
Will Net Cash Flows Decline for PE Fund Investors? Since 2010, there has been a markedly recurrent yearly increase in total distributions to investors in private equity funds. This increase, as well as relatively plateaued contributions, has produced a significantly positive net cash flow for global PE funds. Through the first half of 2015, net…
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