Covenant Trends – 10/24/2016
Industry Average (YTD): Free & Clear Incremental Tranche / EBITDA Contact: Steven Miller smiller@covenantreview.com
TheLeadLeft
Chart of the Week: Fall Rising
So far in October, middle market loan activity is tracking for its fourth consecutive month-over-month improvement.
The Art of the Add-On (First of a Series)
“It’s been a relatively slow year for us,” one managing partner related to us recently. His middle market private equity firm had just completed a successful fundraise, but was finding investing opportunities scarcer than last year. “We’ve only completed four new platform buyouts.” Then he smiled. “But we have done eighty-seven add-ons.” The prevalence of…
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Lead Left Interview – Tod Trabocco
This week we chat with Tod Trabocco, Managing Director at Cambridge Associates LLC. Cambridge is a leading investment advisor to foundations, endowments, private wealth, and corporations worldwide. The Lead Left: For Lead Left readers who may not know Cambridge Associates, could you give a brief introduction of the firm and your role in it? Tod…
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The Pulse of Private Equity – 10/24/2016
PE Fundraisers Going Bigger in 2016 Portends Emerging Spread in Success?
At $225 million, the median US private equity fund size is higher thus far in 2016 than in the several years prior. This is despite relatively healthy fundraising activity in general, with 57 closed vehicles in the third quarter alone; one may suppose that diminished activity could artificially inflate median fund sizes, as the most successful firms are still able to close while others miss out, but that is not the case this year. The increase in size is attributable to a confluence of factors...
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Private Debt Intelligence – 10/24/2016
Private Debt Fund Performance by Strategy
Preqin research finds that the performance of the most prominent private debt strategies – direct lending, distressed debt and mezzanine funds – has been robust, although there is clear fluctuation between vehicles of different vintage periods.
Among 2008-2009 vintage private debt funds, it is distressed debt funds that have the highest median net IRR of any strategy, with returns of 14.8%. These funds were making their first investments during...
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Loan Stats at a Glance – 10/24/2016
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Select Deals in the Market – 10/24/2016
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Markit Recap – 10/17/2016
There are no shortage of factors that have troubled market participants this year: Brexit; US monetary policy direction; fragility in European banks; oil prices. All of these issues, and others, have caused credit spreads to widen at various intervals in 2016.
But the last few weeks have seen calmness return to the credit markets. The VolX Europe, which shows the realised volatility in the Markit iTraxx Europe index, hit 26.4% this week, which is the lowest level for almost two
years...
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