Queuing for seconds Investor appetite for credit secondaries has tripled since 2022, according to our latest Perspectives study. Investors are more switched on than ever to the opportunities available in private credit secondaries, according to Private Debt Investor’s LP Perspectives 2024 Study. In all, 21 percent of LPs now plan to commit capital to secondaries funds…
U.S. Middle Market CLO Snapshot (4Q23) Overall credit quality across U.S. middle market (MM) CLOs under Fitch Ratings’ surveillance remained stable throughout 2023 with muted defaults, while exposure to assets rated ‘CCC+’ or below increased, according to the latest U.S. MM CLO Snapshot. The quarterly report is accompanied by the Fitch U.S. MM Leveraged Loan…
Daily Analytic: Direct lending comprised 59% of US LBO volume in 2023 Execution risk drove more LBO issuers towards the direct lending market last year. US direct lending LBO volume totaled US$57.8bn in 2023, 38% lower year-over-year. Last year’s total comprised 59% of overall US LBO loan volume, easily an all-time high, topping 2022’s 45%…
Life after the fundraising slump All private markets, including private credit, experienced a tough 12 months on the fundraising trail in 2023. Hopes are higher for the year ahead. The fundraising figures are in for full-year 2023 and they reveal a drop in global private credit capital accumulation to just $219 billion, the lowest amount…
European and US LevFin Default Rates Will Continue to Rise in 2024 Leveraged finance default rates increased in 2023 in Europe and the US and will continue to rise in 2024 due to high interest cost burdens and macroeconomic pressure. Both the European and US leveraged finance sector outlooks remain deteriorating…. Subscribe to Read MoreAlready
Daily Analytic: US unitranche issuance climbed sharply in 4Q23 across both the large corporate and middle markets Unitranche lending moved markedly higher in 4Q23, with volume totaling US$44.4bn, the third busiest quarter on record. The jump in unitranche volume was evident across both the large corporate and middle markets…. Subscribe to Read MoreAlready a member?
Investors stick with tried and trusted North America and direct lending are more in favour than ever, PDI’s LP Perspectives survey discovered. In this column last week, we reflected on some of the headline findings from our LP Perspectives survey, which obtained the views of 117 institutional investors on the current state of private markets….
Daily Analytic: US BSL CLO issuance falls 23% in 2023, MM/PD CLO volume more than doubles US CLO issuance declined by 10% in 2023 to US$115.6bn, down from US$128.9bn in 2022. Notably, however, there was a marked difference in the direction of broadly syndicated loan (BSL) CLO activity compared to that of middle market/private debt…
LPs want more private debt That’s the positive conclusion arising from our latest survey of investor attitudes toward the asset class. Every year, Private Debt Investor conducts its LP Perspectives survey, in which we canvass limited partners around the world for their views on the asset class. What this year’s version tells us is that…
P.E Deal Activity Download PitchBook’s Report here. US PE dealmaking finished the year similar to how it started: still struggling to find a bottom. Q4 2023 deal value declined 22.6% YoY, although deal count appears to be firming. For the full year, deal value declined by 29.5% to $645.3 billion, its lowest point since 2017 outside…