Combined AUM approach US$800bn for US CLOs and retail loan funds US CLO assets under management (AUM) have climbed to US$677.24bn in January after a 15% increase last year to US$673bn. Roughly 60% of the assets are in CLOs with a 2017 or later vintage with 8% of assets in vintages from 2014 to 2016….
DL Deals: ACProducts Deep Dive KKR Capital Markets used hard call premiums starting at 103 on ACProducts, a B/B2 credit that had more of a hybrid distribution strategy this month, to protect the attractive L+650 spread from being taken out quickly via repricing. The move is reminiscent of Qlik Technologies in 2016, however today’s repricing…
The humbled FoF market Download PitchBook’s Report here. We’ve wondered before if funds of funds are becoming obsolete. Perhaps a hyperbolic word choice but probably only a couple standard deviations from the truth. FoF fundraising has nosedived over the past decade, as has its industry clout. Our most recent overhang numbers, dissected in PitchBook’s just-released Private…
Women in Private Debt With a growing body of research indicating that more diverse teams and inclusive workplaces directly correlates with stronger business outcomes, the issue of diversity in private debt continues to move up the agenda. Preqin’s 2020 Women in Alternative Assets Report found the proportion of female employees in the alternative assets industry…
Why investors are getting real In the UK and Europe, appetite for real estate and infrastructure debt is on the increase. At Private Debt Investor, our main focus is on corporate loans, typically supporting M&A activity for middle-market companies sponsored by private equity firms. It is, if you like, our ‘bread and butter’…. Subscribe to
Spread differential between a unitranche and first-lien loan remains near all-time tights The middle market sponsored loan arena has kicked off 2020 with a slow start in the syndicated loan market. Refinitiv LPC has only tracked about US$2bn in volume, which trails this time last year of US$3.7bn by 46%. The average first-lien spread on…
Lower Middle Market bustled in January Direct lending deal flow was by far the busiest that Direct Lending Deals has tracked since launching last September. The tally — driven mainly by lower middle market issuers— outpaced December by 43%, and by 28% over October, the second busiest month…. Subscribe to Read MoreAlready a member? Log
Cash flow positive Download PitchBook’s Report here. Net cash flows have been hugely positive for private debt funds recently. PitchBook’s Global Private Debt Report showed a record $24.6 billion funneled back to LPs in 2018, alongside a strong start to 2019 numbers as the data slowly rolls in. Private debt treaded water in terms of net…
Private Debt Performance Lags Other Asset Classes Private debt funds have experienced the second-lowest spread of returns over the 2007-2016 vintage period among all private capital asset classes, surpassing only natural resources funds. However, private debt also has the lowest risk factor, with the smallest standard deviation in net IRRs of any asset class…. Subscribe
Private debt secondaries: On the cusp? Now a well-established part of the private equity universe, secondaries remain very much on the periphery of the private debt world. This seemed to be confirmed by Private Debt Investor’s recent LP Perspectives 2020 survey, which found that only 11 percent of investors who took part were planning to…