Let’s get real Plenty of firms lend against cash flows. Isn’t it better to lend against something you can see and touch? Fundraising for real estate as an asset class is falling. But fundraising for real estate debt is increasing, according to data from Private Debt Investor sister publication PERE. You can see it in…
Private Debt Fund Managers Are Optimistic Despite a Challenging Market As the private debt industry has matured, issues that have historically affected other alternative classes – high valuation and increased competition for transactions – have become increasingly prominent concerns. Almost half (49%) of private debt managers cite valuations as a key challenge facing the industry…
Second lien issuance reaches $6.8B so far in 1Q18 Syndicated and privately placed second lien loan volume has reached US$6.8bn so far in 1Q18, which is not too far behind 4Q17’s volume of US$8.6bn. Issuers continue to rely on second lien facilities to maximize their leverage as 61% of the second liens tranches have been…
Is Corporate VC hurting PE? PE investors are no strangers to competition. Fellow PEGs and strategic buyers have been around since the beginning, and family offices and fundless sponsors are fast becoming significant players in the middle market. A new hybrid competitor is starting to flex its muscle, almost undetected by the broader industry: corporate…
Thirst for yield overshadows other concerns Worries over market valuations are being suppressed by investors still keen to embrace the private credit and private equity markets. In our limited partner survey conducted recently, North American respondents told Private Debt Investor their biggest macroeconomic concern was “extreme market valuations”. On a scale of 1-5, investors registered…
UK-Based Private Debt Fundraising: An Overview The UK-based private debt fundraising market witnessed a record 2017, with 22 funds securing a total of $19bn in capital, exceeding the previous record of $11bn raised by 21 funds in 2015. 2017 also marked a sharp uptick from the previous year: in 2016, 19 UK-based private debt funds…
The year 2018 marks the 10th anniversary of the collapse of Bear Stearns and Lehman Brothers and still the task of tackling “Too Big To Fail” is far from complete. On the contrary, regulation aimed at preventing taxpayer-funded bailouts is yet to be fully implemented – a fact that may come as a surprise to…
Institutional term loans spreads are back to 2007 levels Average spreads on first-lien institutional term loans have dropped to their lowest level since 4Q07. The drop has been across the board. The average spread for large corporate issuers is 320bp so far in 1Q18; this is 10bp below their 4Q17 levels and only 8bp above…
Dance with the one who brought you Download PitchBook’s Report click here. Limited partners have found plenty to complain about over the years. They aren’t high maintenance per se, but they do fuel the private equity industry, take an opportunity risk in doing so and often feel short-changed by GPs hungry for more management fee…
Investors Remain Satisfied with Private Debt In December 2017, Preqin surveyed a sample of the private debt investor community to gauge their perception of the asset class, the extent to which they felt that their private debt investments have lived up to expectations over the past year, as well as their intentions for their private…