Private Debt Performance Private debt has proven to deliver stable returns in the longer-term (three years plus). Across all strategies, 5-years to March horizon IRRs, mezzanine funds have the strongest returns (7.6%), making the overall private debt returns of 5.1%…. Subscribe to Read MoreAlready a member? Log in here...
Refinancings to the fore It’s one way in which private debt is changing as a result of the global health crisis. With parts of the world seemingly going through a second wave of the coronavirus, it’s difficult to accurately predict how the asset class will develop over the coming years. But some pointers are beginning…
Middle market syndicated non-sponsored volume dropped in 3Q20 Non-sponsored syndicated loan issuance of US$10.2bn in 3Q20, was down 24% from already low 2Q20 figures. 3Q20 issuance was spread over 80 deals, the lowest level of transactions in a quarter for at least 13 years. Refinancings plummeted once again in 3Q20…. Subscribe to Read MoreAlready a
Sun Life’s $338M acquisition of Crescent Capital underscores confidence in direct lending Sun Life Financial’s $338 million acquisition of Los Angeles-based Crescent Capital underscores investor confidence in direct lending, even as the Covid pandemic has upended global economies. Sun Life, a Toronto-based insurance company that has a small direct lending team within its $193 billion…
Not everyone is buying Download PitchBook’s Report here. Private equity enjoys some advantages over corporate acquirers right now. PitchBook’s latest North American M&A Report, now available, visualizes this trend in the chart above. Third quarter numbers show a small uptick in PE deals and a small slowdown in corporate M&A, resulting in a sharp spike in…
Record Amounts of Funds and Capital in the Private Debt Market The number of private debt funds in market and the capital targeted have reached new records at the beginning of Q4 – 521 funds in market seeking for a combined $295bn. This is a 54% increase compared to January 2020, when funds on the…
Fundraising has not been stopped in its tracks Senior debt strategies lead the way as capital accumulation manages to retain some forward momentum. Private debt funds raised a total of $109.8 billion during the first nine months of 2020, the lowest figure since 2016, according to PDI data (see chart above)…. Subscribe to Read MoreAlready
3Q20 MM sponsored loan issuance picks up from 2Q20’s low, but still quite anemic Sponsor-backed middle market volume showed a pick up in 3Q20 to US$5.6bn, up 120% from 2Q20’s post credit crisis low. But volume was still quite dire and over 62% behind 3Q19’s level. While pricing has been tightening dramatically month after month,…
Carveouts – up but not booming Download PitchBook’s Report here. One of the earliest predictions back in March was that PE-led carveout activity would go up. PEGs had dry powder to spend and corporate sellers had liquidity concerns—they were also going to need to concentrate on their core businesses, so it made intuitive sense than ancillary…
Direct Lending and mezzanine strategies gathered most of the capital in Q3 2020 In Q3 2020, private debt fund managers were able to secure $8.4bn by 20 funds closed. What fund types stood out? Direct lending and mezzanine strategies secured the bulk of capital, raising $3.8bn and $2.6bn respectively…. Subscribe to Read MoreAlready a member?