Where will all the infrastructure money go? Almost three political centuries ago, expectations were high for a bi-partisan and highly funded infrastructure bill. While a lot has happened since January 2017, the promised infrastructure package was not one of them. Recall, though, the fervent efforts among PE investors to piggyback off of those plans. Blackstone…
1-3Q19 Leveraged issuance down 32%; Institutional volume at 5 year low The 3Q19 leveraged market logged just over US$245B of issuance, flat from year ago levels, to push 1-3Q19 totals to US$762B, the lowest nine month total in seven years. Most of the shortfall can be traced to hints of market stress which have contributed…
Private Debt Investors’ Attitude Towards ESG The discussion around environmental, social and governance (ESG) within alternative assets has never been so lively as it is now. Investors are conscious of the importance of ESG investing and they are carefully looking for funds to ensure they meet the requirements in this area. At the same time,…
Asian credit fundraising is a drag A dip in H1 2019 private debt fundraising numbers doesn’t mean the year’s total will finish less than prior years, as the second half of the year is typically stronger than the first. Capital raising in the Asia-Pacific region has lagged in the first half of the year, pulling…
Usually good but seldom great Download PitchBook’s Report here. PE mega-funds (of at least $5 billion) have tended to outperform smaller funds over the past 20 years. That shouldn’t come as a surprise, as mega-funds are only raised by firms that have outperformed over time. At least for private equity, the biggest firms are almost by…
As Libor declines, Libor floors begin to trickle back As interest rates continue to decline, Libor floors are on investors’ minds once again. As of September 24, the 3-month Libor rate was 2.11%, 69bp below its 2018- year-end level. So far in 3Q19, the average Libor rate is 2.20%, down from 2.51% in 2Q19. If…
Private Debt Investors’ Preferences Based on the Preqin’s Investor Update report, private debt investors would have changed their preferences on how and where the best opportunities are presented in the asset class in the next 12 months. Direct lending remains the most sought-after strategy among private debt investors, with almost half (49%) believing the strategy…
A drop in fund closings portends more capital in fewer hands Yet another data point is emerging to showcase how fewer managers are raising an outsized amount of the capital LPs are allocating to the asset class. One of the most prominent trends in private credit today has been that of consolidation. It’s often used…
Middle market update Download PitchBook’s Report here. Middle market PE activity was strong through the first half of the year, according to PitchBook’s newly calculated Middle Market Report. Both deal value and overall volume are on pace to match or exceed last year’s numbers, both of which were records. The back half of the year has…
Private Debt Investors Challenges in the Next 12 Months Preqin’s latest survey finds that private debt investors remain committed to the asset class, and their overall perception of the industry is positive. Performance has satisfied most investors across the asset class – 88% of them said their investment portfolios had met or exceeded their expectations…