Direct Lending Sees Record Fundraising Private debt fund managers have experienced increased fundraising success, and the direct lending industry has especially benefitted from high levels of fundraising activity in recent years. Direct lending has already seen record fundraising levels in 2017, and aggregate capital raised in the year has already surpassed the capital raised in…
Investors have increasingly warmed to riskier issuers since 2016 Since the second half of 2016, investors have increasingly gotten more comfortable with riskier names. According to the Flex Factor, which aggregates price and structural flex activity on institutional loans, B3 rated issuers have seen more issuer friendly changes to their loans now compared to a…
US-Canada PE activity rising, despite politics Download PitchBook’s Report click here. Cross-border private equity activity remains high in Canada, despite trade-related fears at the onset of the incoming Trump administration. According to our latest Canada Breakdown report, available to download here, PE activity involving US investors is on a quick pace in 2017. The 163…
US-Focused Mezzanine Funds After a record year for US-focused mezzanine fundraising in 2016, 2017 has seen a significant slowdown. In fact, 2016 saw 31 funds secure $28bn in capital, surpassing the previous record levels seen in 2008 when 23 funds closed on $24bn. Following the Global Financial Crisis, 2009 saw a record low in fundraising…
Venezuela – are we close to default? Waiting for a default on Venezuela’s bonds has been like waiting for Godot. Low oil prices and macroeconomic mismanagement has led to a catastrophic collapse in economic activity – our colleagues in country risk are forecasting a 7.5% GDP contraction. Civil unrest is on the rise,… Subscribe to
Many BDCs still struggling to trade at book value and higher Investors are getting ready to parse through a slew of BDCs earnings, which will be released this week. Last quarter, many BDCs disappointed with announcements of rising non-accruals, dividend cuts, and declining yields which caused the average price to net asset value per share…
PE’s growing influence on M&A Download PitchBook’s Report click here. Private equity holdings now make up 11% of all target companies in the M&A market. That percentage was a good deal smaller in the not-so-distant past, but the share of PE-backed M&A targets has steadily increased since the financial crisis. Simple arithmetic explains part of…
Asia-Focused Distressed Debt Fundraising Over the past ten years, 26 Asia-focused distressed debt funds have closed, securing $7.8bn. Of those funds, just 13 had a focus on India or China, which raised $4.4bn. Seven of those vehicles were India-focused, while five were China-focused. However, 2015 and 2016 saw a jump in India- and China-focused fundraising,…
Leverage levels diverged on middle market sponsored deals in 3Q17 When it comes to lending to smaller issuers, bank and non-bank lenders have very different risk tolerances in today’s market. Back in 2013 banks and non-bank lenders both lent to middle market issuers at similar leverage levels. However over time that has diverged due to…
Feels like the first time Download PitchBook’s Report click here. Like Aaron Judge of the New York Yankees, rookies are sometimes better than the veterans. In our latest Analyst Report, we analyzed first-time PE fund returns against the broader PE landscape. Even with the disadvantages that come with rookie funds—less experienced staff, smaller infrastructure, fewer…