In our various overseas meetings over the past six months with institutional investors in the Middle East, Japan, UK, Germany, Belgium, Switzerland, Singapore and, most recently, Australia, consistent themes arise. The virtues of private credit are generally well appreciated, particularly in light of recent interest rates that have lifted all-in returns to historic highs. But…
In our continuing series on global private credit, we next cover the history and outlook for the asset class in Australia. In a visit to Melbourne and Sydney last week, we met with a number of clients and firms with exposure, appetite, or interest in private debt. What became clear in these conversations was how…
We conclude our special series on private market valuation myths with: Myth 3: Leveraged capital structures lead to conflicts of interest amongst private equity sponsors and lenders that can create negative outcomes and lower valuations. We asked Ron Kahn, Lincoln International’s valuation chief, to help parse this issue. “If you look at public company capital…
We began our special series by dispelling the notion that privates should mimic publics. This week we tackle: Myth 2: Private equity valuation processes lack objectivity and transparency, which inflates values compared to public counterparts. For help we turn again to Ron Kahn, Lincoln International’s head of valuations. Lincoln recently published an excellent article, “Three…
In our special series last month on why private debt valuations should not be viewed through the same lens as those of public debt (“Glasses Half-Full”), we dug into the various characteristics of illiquid loans that make them particularly attractive in the current market. Now our friends at Lincoln International have published a timely report…
Besides private credit, there’s growing volume in Singapore around private equity, real estate, and even venture capital. And investors there are researching specialty finance areas such as royalty financings, asset-backed, aviation, and legal settlement. Fundraising for APAC private debt amounted to $14 billion in 2022, a rather modest figure compared to US and Europe, but…
In our second visit to Asia this month, we again found both variety and vitality of interest among managers and investors in private markets. Two stellar industry conferences in Singapore, the PDI’s APAC Forum and Asian Private Banker’s Alternatives in Focus, headlined speakers from top global and regional shops. Attendees were, at PDI’s event, leading…
In conversations with dozens of institutional investors over the past several months, consistent themes recur. First, there’s the sense of continually being bombarded by unexpected bad news rocking markets. Then having few clues before each Fed meeting what the central bank will do with rates. Finally, there’s the worry that too-high rates will send the…
As we continue our series examining the effects of higher interest rates and a potential recession on private credit, we also now need to throw in the impact of recent bank failures. It’s clear all sorts of economic and market indicators – the Treasury curve, Treasury spreads, stock prices, to name a few – are…
Many of us who lived through the financial crisis of 2008-2009 had flashbacks to that era. The collapse of Silicon Valley Bank and Signature Bank also raised concerns about the underlying health of bank balance sheets, particularly for the smaller firms. We were reminded of how customer confidence is everything for depository institutions. Banks exist…