Direct lending reigns supreme despite risks A plurality of LPs plan on committing more to the strategy than any other credit product, our annual investor poll found. More covenant headroom, wider credit spreads and a mountain of capital: that’s how LPs view not just for the upper mid-market or the broadly syndicated market, but all…
Grading our predictions, part 2 Download PitchBook’s Report here. Last week we previewed our upcoming webinar with ACG on how our 2019 private equity predictions panned out. This week’s rearview assessments is one of our misses—we thought private debt fundraising levels would rebound off of a slower 2018. Slow being relative, as it was still one…
North America’s dominance shows in 15 largest global investors The biggest backers of the asset class generally reside in the world’s largest and most sophisticated alternative credit market. The top half of our inaugural Global Investor 30 rankings shows a worldwide embrace of the asset class, though there is a bias towards North America…. Subscribe
Oil and gas lending follows oil prices down The oil and gas industry is facing many challenges – recession fears, the ongoing trade war, regulatory shifts and excess global supply amid slowing growth in demand – all of which have curtailed any expectations of a meaningful increase in oil and gas prices. Oil prices have…
UK-Based Private Debt The UK-based private debt fundraising market saw a record 2017, with 29 funds closed raising an aggregate of almost $29bn in capital. The previous record year seen was 2015 with 22 funds securing $19bn, and so far this year there have been 22 funds closed and $27bn of capital secured…. Subscribe to
Grading our predictions Download PitchBook’s Report here. Earlier this year, we published our 2019 Private Equity Outlook, our crystal ball analyst note where we took a crack at predicting trends in the year ahead. With 2019 wrapping up, we’ll be grading our predictions in an ACG webinar on December 17. We’ll provide the link in next…
Distressed percentage accelerates on BDC loans For several years in an asset and yield starved market, BDCs stretched up the risk spectrum in an effort to keep up their lofty dividend yields. As the credit environment becomes tougher this year amid slowing global growth, more cracks are beginning to surface in BDC holdings. So far…
Direct Lending Fundraising Recovers Private debt fundraising kept decreasing in 2019, driven by a fall in mezzanine and distressed debt fundraising. However, direct lending continues to represent the largest bulk of fundraising activity, and 2019 has seen a big recover for this strategy. Direct lending fell in 2018 closing 84 funds securing $52bn, after seeing…
BDC leverage on the rise, one tool to combat falling Libor After peaking in December 2018 at over 2.8%, 3-month Libor has since fallen to 1.9% and BDCs are reporting lower weighted average yields in 3Q19 as a result. Following this steep decline, BDCs are taking advantage of their flexibility to increase leverage under the…
PE’s tech infatuation Download PitchBook’s Report here. Tech-focused dry powder has almost doubled since 2016. The latest returns data available is through March of this year, when it totaled $93.1 billion across North America and Europe. That marked a 93% increase since 2016’s cumulative $48.2 billion, according to PitchBook’s latest analyst note on tech funds. The…