U.S. large corporate LBOs are averaging bigger, more expensive deals so far in 2018 Register now for LPC’s 6th Annual Middle Market Loans Conference – April 25, 2018 at the NY Marriott Marquis! While it is still early in 2018, average purchase price and purchase price multiples on large corporate LBO deals have increased so far…
Four years’ worth of powder Download PitchBook’s Report click here. Much has been said about PE dry powder levels, which continue to peak year after year. Our calculations show about $848 billion of unspent buyout/growth capital across North America and Europe (as of June 30, by the way). That’s still a 22% increase over year-end…
Investors in Private Debt Private debt has maintained steady interest from investors due to its strong performance and high levels of capital distributed back to investors. There are currently over 3,100 institutional investors actively investing in private debt or considering entering the asset class. This represents an increase of 700 investors in the course of…
Italy election – markets are sanguine We noted at the end of last year that the coming 12 months would probably be low on political risk, at least in comparison to the election-packed 2017. The one highlight in Europe would be Italy’s general election, unless talks on a Brexit transition unravel spectacularly…. Subscribe to Read
LBO leverage levels continue to loosen Debt to EBITDA levels on LBO deals spanning the entire market (including broadly syndicated and institutional middle market loans) are currently averaging 6.3 times when looking on a rolling last four quarter basis. This would make it the highest post-crisis average and second only to 4Q07’s average of 6.5…
A closer look at multiples Download PitchBook’s 2017 Annual US PE Middle Market Report click here. The debt markets have been white hot recently, providing a tailwind for private equity and helping prop up valuations across the middle market. While cheap money has been a plus overall, investors have had to cap their debt commitments…
Asia-Based Investors Surge into Private Debt The private debt industry has seen a steady increase in the number of investors active in the asset class in recent years. As the asset class has become more prominent and more distinct from the wider private capital market, institutions have begun to take more active involvement and allocate…
CLO AAA spreads continue to tighten in early 2018 Spreads for U.S. CLO AAA notes continue to tighten in early 2018 with the average AAA discount margin dipping south of 110bp in mid-February down from 113bp at the end of December. Thinner pricing has been led by Zais Group’s US$460m CLO which came to market…
Venturing into new territory Download PitchBook’s Report click here. It would have been hard to predict ten years ago, but private equity is becoming a prominent buyer of venture-backed startups. According to our 2017 Annual VC Liquidity Report, buyouts now account for almost a fifth (18.5%) of all VC-backed exits, up from about 14% in…
European Private Debt Deals Increased private debt financing over the past seven years can be largely attributed to the continuing retreat by banks from loan markets under the pressure of tougher capital rules. As a result, private equity transactions and corporate acquisitions, which were largely financed by banks in the past, are increasingly backed by…