US investors displayed more caution on riskier loans in February Overall, flex activity in the US institutional loan market favored issuers in February with LPC’s Flex Factor tracking 15 deals that favored borrowers against 10 that went in investors’ favor…. Subscribe to Read MoreAlready a member? Log in here...
Are IRRs inflated? Download PitchBook’s Report here. It’s a slightly different question than asking whether IRRs are trustworthy in general. That debate has been around for years and will continue to be. The inflation question is being asked a bit louder nowadays, thanks to a renewed focus on subscription credit lines…. Subscribe to Read MoreAlready a
A taste for adventure Beset by concerns about competition and deal structures, limited partners are tempted to look beyond familiar territory. It’s not all about direct lending any more. As our accompanying chart from Eaton Partners shows,… Subscribe to Read MoreAlready a member? Log in here...
Seasoned credit investors are painfully familiar with shareholder-friendly actions. Leveraged buyouts, debt-financed share buybacks and special dividends can all deliver nasty surprises to bondholders. But idiosyncratic risk works both ways and companies can implement policies that favour bond investors,much to the chagrin of equity holders. Marks & Spencer is a good example…. Subscribe to Read
Downturn opportunities don’t last long Bain & Company released its annual private equity report this week. It’s required reading for the industry every year. One of their more salient points is the resiliency of purchase price multiples following downturns. In the two-year window between 2009 and 2011,… Subscribe to Read MoreAlready a member? Log in
Privately placed second-lien issuance picks up this quarter So far this quarter there is US5.2bn in completed and pipeline second-lien issuance, well below the US$8bn level it has reached the previous nine quarters. In addition, a greater share of second-lien issuance is getting privately placed…. Subscribe to Read MoreAlready a member? Log in here...
Private debt is expanding despite its competitiveness PDI data show almost twice the number of investors this year are set to expand their GP relationships than decrease them. Many limited partners have already set their private debt investment pacing plan for the year and, pending their fiscal year, may be getting ready to decide another…
Ample Room Left for Private Debt Growth Investors are, on average, well below their target allocations to private debt, and over the next 12 months a third of investors will look to commit more capital than they did in the previous 12 months in an effort to move closer to their targets. Over the longer…
BDC returns superior so far in 2019 If you were not buying BDC stocks in the dip in December, you are probably feeling remorse because BDC returns are quite stunning so far in 2019. After posting a dismal -6.6% return in 2018 and 0.1% in 2017, returns have gone sky high so far in 2019…
Are dry powder levels a concern? Download PitchBook’s Report here. PE capital overhang levels reached $800 billion last year between North America and Europe. For perspective, the buyout boom overhang peaked in 2008 at $599 billion. The cumulative weight of today’s dry powder isn’t the only difference between eras, however…. Subscribe to Read MoreAlready a member?