This week we continue our conversation with Michael Ewald. Michael is a Managing Director, the head of the Private Credit Group and Portfolio Manager for Bain Capital Credit’s Middle Market Opportunities and Senior Direct Lending fund strategies. Bain Capital Credit, founded as Sankaty Advisors in 1998, is a leading global credit specialist with over $30…
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 comprises of more than 6000 middle market loans - with 56% senior debt, 31% subordinate debt and 9% equity. The blue line displays the BofA Merrill Lynch US High Yield, which tracks the performance of USD denominated below investment grade corporate debt publically issued in the US...
RP Builder Basket By Type & Rating
PE Fundraisers As Successful as Ever, Suggesting Industry’s Maturation
89% of private equity funds closed in the US last year, against a backdrop of healthy fundraising levels—252 vehicles combined for a total of $180 billion committed. This decade-high proportion of fundraising success leads one to the most evident conclusion that limited partners are still eager for exposure to the asset class. Combined with the historically strong median buyout fund size of $250 million in 2016...
Private Debt Fundraising by Geographic Focus
Preqin’s latest data finds that through 2016, 130 private debt vehicles reached a final close raising a combined $92bn in another strong year of fundraising for the asset class. However, the year also saw greater capital concentration in the more developed markets of North America and Europe as managers looking to invest in Asia and Rest of World struggles to attract the same levels of capital...
Sponsors for club buyout financings are putting in more equity capital than either their broadly syndicated or larger middle market counterparts.
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Unitranche volume grows while deal sizes get bigger
As money continues to pour into the middle market searching for yield, the unitranche structure continues to gain traction. Unitranche volume reached US$13.3bn in 2016, up from US$8.5bn in 2015. Bigger deals were seen in 2016 as more and more lenders continued to build scale and increase their hold size. The average deal size was $198M in 3Q16 and $129M in 4Q16. But 50% of unitranches continue to be in the $0-$100M deal size area...
Contact: Steven Miller smiller@covenantreview.com
☞ Click for a larger image.