U.S. BDC Earnings, Credit Headwinds to Persist in 2024 Fitch-rated U.S. business development companies (BDCs) face persistent headwinds in 2024, with rising paid-in-kind (PIK) income and continued markdowns of investments during 1Q24 signaling additional credit issues and resultant net investment income (NII) pressure…. Login to Read More...
Download PitchBook’s Report here. In PitchBook’s 2024 US Private Equity Outlook, we forecast this would be the year that continuation funds hit critical mass and would reach 100 or more exits of this nature…. Login to Read More...
What are middle market lenders top 3 concerns for the remainder of the year? Middle market lenders were asked in a recent LPC survey what are their top 3 concerns for the remainder of 2024…. Login to Read More...
‘Grace period’ on road to net zero Private debt has new guidelines as it seeks credibility in its response to climate change. The Institutional Investors Group on Climate Change – formed in 2001 as a forum for collaboration between pension funds and asset managers on climate change issues – has published the first net-zero guidelines…
Source: PitchBook LCDContact: Ryan Brownryan.brown@pitchbook.com
In this series we’ve reviewed market conditions for issuers as we wrap up 2Q and head into the second half of the year. Let’s conclude by looking at how investors view this environment and what questions and conclusions are arising. As we’ve highlighted, there are headwinds and tailwinds in deal flow. Demand from managers who…
Middle market direct lending spreads per unit of leverage consistently higher than large caps. Source: LSEG LPC(Past performance is no guarantee of future results.)
A shift to online purchases contributed to lower sales in physical stores During recent years, the surge in online shopping contributed to the struggles faced by numerous brick-and-mortar retailers. Online purchases spiked to 15.7% of all retail sales during the COVID-19 pandemic, when a lot of retailers had to close their stores. The share of…
We’ve spent the last six weeks outlining best practices top direct lenders employ so portfolios generate the highest returns complemented by the lowest risk. Nevertheless, stuff happens. In fact, we count on stuff happening. You need to be prepared to deal with those eventualities. Workout fatigue is a real thing. It’s tempting to dismiss businesses […]
Distressed debt leads Preqin’s performance forecasts Preqin forecasts that returns from private debt will remain steady up to 2028 at 9.8% per annum (a drop of just 0.1% from the 2019-2022 period). Direct lending returns are forecast to drop to 7.3% for 2022-2028, down from 8.6% for 2019-2022, reflecting a focus on more conservative loans…