Sustained High Multiples Contributing to Deal Values in the US Lower Middle Market In a recent Lead Left column, we observed that median enterprise value/EBITDA buyout multiples for businesses with EVs of under $25 million were quite high, at 6.13x in 2Q 2016. Coupling that with yearly deal flow figures for the US lower middle…
Private Debt Fundraising Remains Low in Q3 2016 Preqin’s Q3 update on the private debt fundraising market finds that the quarter marked a further slowdown in the levels of capital secured by managers in the space, as 2016 continues to see a far reduced rate in fundraising activity from recent years…. Subscribe to Read MoreAlready
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Numerous press articles in recent years have predicted the death of single name CDS. Onerous capital requirements, costly changes in market structure and alternative hedging tools have all been cited as factors driving the inexorable decline in the product. No one could deny that CDS activity has dropped sharply from its pre-crisis heyday. But the…
Despite strong market technicals, 3Q16 global loan volume down 33%; 1-3Q16 volume down 13% y-o-y Despite strong market technicals, at US$736Bn, global syndicated loan issuance was down 33% in 3Q16 reversing … Subscribe to Read MoreAlready a member? Log in here...
Given all the benefits of having a private equity firm as your partner, why would you even finance a company without one? We put that question to Brett Hickey, the CEO of Star Mountain Capital, who specializes in this sector. “There’s a lot of hype around non-sponsored transactions,” he told us. “It’s definitely buyer beware….
Second quarter non-sponsored loan volume was down 5% from the first quarter but off sharply from the second quarter last year. Source: Thomson Reuters LPC
Contact: Steven Miller smiller@covenantreview.com
Familiarity Breeds Debt Usage Based on PitchBook and aggregated survey data, average debt levels in the second quarter of 2016 were much higher for transactions with smaller companies than they were for their larger counterparts. In fact, businesses with enterprise values of up to $25 million averaged 53% in… Subscribe to Read MoreAlready a member?
This week we continue our conversation with Fran Beyers, Senior Market Analyst at Thomson Reuters LPC. Thomson Reuters LPC has been a leading provider of loan market news, data and analysis for over 30 years. Fran has been with LPC since 2009 providing analysis and market commentary on the middle market. Second of two parts – View part…