The pros and cons of long-dated funds Download PitchBook Report here Private equity moves at a glacial pace. While the average shelf life of a PE fund is often assumed to be eight to ten years, many funds require considerably more time to wind down. PitchBook data shows that it takes between 11 to 14…
Can Asia Pacific make a breakthrough? The region has been characterized by modest overall fundraising totals boosted by occasional mega-funds, but there is hope that this year may be different. Looking at fundraising data for the Asia-Pacific region over the last four-and-a-half years does not appear to provide much encouragement: 2015 saw almost $8.5 billion…
Private Debt and Public Market Performance A key issue for investors when evaluating the performance of their private debt investments is the correlation to public markets. Part of the appeal of private debt is its low correlation to other asset classes, as well as its long-term and illiquid nature. As such, though, it makes accurately…
The upside of SBOs Secondary buyouts have been a contentious part of the PE industry for a long time. Limited partners are the most vocal about “pass-the-parcel” deals; in rare cases they are both buyer and seller of the same company (if they’re invested in both funds), but even when that’s not the case, studies…
Market Survey: Will new issue CLOs reach US$140bn this year? Roughly one third of the CLO managers, arrangers, and investors across the stack surveyed by Thomson Reuters LPC said CLO issuance will be US$110bn this year, while another third said US$120bn and 10% said new issue CLOs will reach US$130bn, which would be a record…
A direct way forward More limited partners are going straight to businesses to invest and it brings benefits to managers and borrowers. The Alaska Permanent Fund Corporation has joined a growing number of limited partners doing direct credit investing, as the sovereign wealth fund announced it was creating a $1 billion portfolio for the effort…
Private Debt Fundraising Struggles to Gain Momentum in Asia Although the rapid expansion of the private debt industry is widely recognised, it is equally apparent that the bulk of the increase has been focused on established markets in North America and Europe. Less focus has been paid to opportunities in Asia, and consequently the region…
Italy ISDA basis – redenomination risk The spread volatility seen in recent days brings back memories of the 2010-2012 eurozone debt crisis. Whether they are fond recollections or not – many investors are no doubt scarred by the experience – in such febrile times observers from all asset classes reach for the CDS toolbox to…
At roughly US$360bn, YTD global M&A loan volume is outpacing year ago totals About US$360Bn of global M&A loan has worked its way through the retail markets so far this year, an increase of 5% over the same time last year. Roughly 76% of deal flow has originated in the Americas which have raised over…
PE Firms Compete More Avidly for Value in Healthcare After steadily climbing over the past several years, the median size of healthcare private equity buyouts across North America and Europe peaked at a remarkable $136.8 million in 2017. Growth investing, meanwhile, has stayed relatively steady throughout the same period. (It should be noted that choppiness…