Global private fund returns of capital has begun to improve since early 2023. Source: MSCI – Private Assets in Focus(Past performance is no guarantee of future results.)

Higher for longer has compressed leverage for both cov-lite and cov-heavy loans. Source: LSEG LPC(Past performance is no guarantee of future results.)

Loan participants see higher defaults from 1.6% today, but not much higher. Source: PitchBook/LCD(Past performance is no guarantee of future results.)

Market observers now think a rate cut at the Fed’s June meeting is unlikely.   Source: The Daily Shot(Past performance is no guarantee of future results.)

The Fed’s “higher-for-longer” has compressed leverage loan coverage ratios. Source: PitchBook | LCD(Past performance is no guarantee of future results.)

Top three criteria investors use to select credit managers are portfolio-centric. Source: Coalition Greenwich 2023 Private Credit Market Structure Study(Past performance is no guarantee of future results.)

Private borrower covenant (not payment) default rates fell for third straight quarter.  Source: Lincoln International Proprietary Private Market Database(Past performance is no guarantee of future results.)

The reversal of refinancings between direct lenders and the liquid market is dramatic. Source: PitchBook LCD(Past performance is no guarantee of future results.)

Despite modest spread softening, direct lending yields remain at record levels. Source: LSEG LPC(Past performance is no guarantee of future results.)

New CLO formation so far in 2024 has been the second fastest start ever. Source: PitchBook LCD (Past performance is no guarantee of future results.)