2019 US Syndicated loan volume down 20% compared to 2018 record high At US$2.1trn 2019 U.S. syndicated loan volume was down 20% compared to the record setting US$2.6trn raised the prior year amid a thinner pipeline of deals, higher market valuations and the long – if tangential – shadows cast by geopolitical and economic unease….
2020 prediction – a dip in fundraising Download PitchBook’s Report here. 2019 fundraising levels hit record territory in the US, passing $300 billion for the first time. Year-end numbers show a decline in the number of fund closings, though, which fell to 202. Despite the capital haul, that’s the fewest US fund closings since 2012. Taken…
LPs set to continue strong backing of private debt in 2020 Private equity will also maintain healthy investor support, which is likely welcome news to many direct lenders that focus on sponsor-backed transactions. Private debt managers will likely enjoy continued investor support in 2020, according to PDI Perspectives 2020, the latest installment of our annual…
Yields bifurcate within the single-B category Investors took a cautious approach and became more selective in the latter part of 2019. In turn, the yield premium between double-B and single-B rated issuers widened significantly. The bifurcation has also trickled down into the single-B category as there has been a wide differential between higher-rated B1/B+ issuers…
2020 prediction – more VC-to-PE buyouts Download PitchBook’s Report here. Our 2020 Private Equity Outlook went out last week, and we’ll delve into some of our predictions as we roll into the new year. One trend we expect to see more of is VC-to-PE buyouts. Though they’re often mentioned in the same sentence, venture capital and…
North America Private Debt Set to Hit $500bn The North America-focused private debt market has seen a slowdown in 2019. As of December, 58 funds focused on the region had closed, raising a combined $40bn. This is significantly down from the 118 funds that secured $74bn in 2018, and is the lowest fundraising year since…
Despite conventional wisdom, investors want more GPs The biggest question isn’t around whether LPs want more GP relationships. The question is, is this good for first-time managers? In a data set that could be rather friendly to first-time managers, almost five times as many investors want to increase the number of GPs they work with…
US secondary loan bids get a boost from improved single-B sentiment Average bids in the US secondary loan market have been on the upswing of late. The LPC 100, Refinitiv LPC’s cohort of the 100 largest and most liquid loans, closed Monday bid at 98.02, its highest level since August 2. The LPC 100 was…
Middle market firms rarely target the public market Download PitchBook’s Report here. Middle market investors aren’t known for prolific take-private activity, but the percentages are surprisingly low. For the past two years, middle-market take-privates have accounted for less than 2% of all middle market activity. 2% is pretty skimpy. Dating back to 2014, MM buyouts have…
Direct Lending: Add-ons maintain share over buyouts in November Add-on acquisitions continued to drive financings over buyouts in November, accounting for half the tally, compared to 42% for LBOs, according to Direct Lending Deals. Other proceeds, which include growth financing, accounted for 8% of volume, according to DLD. … Subscribe to Read MoreAlready a member? Log in here...