U.S. Primary yields widen slightly to 7% so far in July After declining in May and June, primary US institutional yields have inched up in July. The average yield, assuming a three-year term to repayment on first-lien institutional term loans is 7.01% so far in July; up from 6.68% in June, but a lot lower…
Private Debt Performance Remains Positive Horizon IRRs for the overall private debt asset class remains above 6% for one-, three- and five-year horizon to December 2019, oscillating between 6.1% and 6.5%. Direct lending funds improved over the past quarter, contrasting with the overall private debt asset class…. Subscribe to Read MoreAlready a member? Log in
The long and winding road Fund managers have found it difficult persuading investors to part with commitments during the pandemic, but demand is still strong. It’s not only economies upon which the covid-19 pandemic is having a slowing effect. As our chart above shows, it’s also the speed with which investors are making commitments to…
Weighted average bids of US CLO portfolios continue to edge higher The value of loan assets in U.S. CLO portfolios has continued to trend higher over the last three months, clawing back some of the losses that battered markets at the end of March, according to analysis from LPC Collateral. Looking at the distribution of…
Carveouts inching up Download PitchBook’s Report here. Carveouts are up slightly as a proportion of US PE activity, according to PitchBook’s latest Breakdown Report. They made up 10% of all deal flow in Q2, which is on the high end of what we’ve seen over the last three years. Carveouts didn’t boom in numbers in Q2…
Private Debt Fundraising in Q2 The outlook for private debt is slightly more promising at the midpoint of the year. A total of $34bn was raised over Q2 from 49 private debt funds closed, which compares with 36 funds securing $22bn in the first quarter of 2020. What’s more, an increasing number of funds are…
Europe’s renaissance amid the fundraising slump Our final H1 2020 figures show the region grabbing investor attention – at least on a relative basis. It has not been the brightest of starts to a fundraising year, with just $63.1 billion raised by private debt funds globally in the first half of 2020 according to the…
2Q20 US syndicated down 46% y-o-y; 1H20 off 33% Following the shock, fear and aggressive spread of the Covid-19 virus which brought the world to a standstill in 1Q20, the pandemic and its impact on the global psyche became a mainstay in 2Q20. Across the capital markets, virtual office environments were up and running far…
Q2 was as bad as expected PitchBook’s latest US PE Breakdown is out this Friday, and newsletter subscribers will have access to it that morning. The first full quarter of COVID-impacted data is in and it isn’t pretty. Overall US PE deal flow was down 54% from the first quarter, from 1,147 transactions to only…
Private Debt Investors are Planning Commitments to Fewer But Larger Funds Diversification and uncorrelated returns are the main reasons why investors allocate to private debt, and they are continuing to plan commitments in this period of uncertainty. Based on Preqin’s fund search data, it seems though, that private debt investors are adapting their strategy as…