Long proclaimed as one of the U.S. sectors most ripe for private equity investment, given its growth prospects as well as its relatively fragmented nature, healthcare services saw a decade high of 203 completed buyouts in 2015. Total deal value also surged after staying relatively flat for three years,… Subscribe to Read MoreAlready a member?
Back in August 2014 I wrote a note that highlighted how the restructuring of Banco Espirito Santo (BES) exposed flaws in the 2003 ISDA CDS definitions, flaws that should be remedied by the new definitions introduced later that year. It was a far from perfect situation but a CDS succession event followed and that was…
At US$2trn, US syndicated loan issuance was down 6% compared to 2014. Leveraged loan issuance fell 17% in 2015 to US$783bn but this was offset by a 4% increase in investment grade lending which reached a record US$873bn. At $US740bn, US new money lending was the third-highest on record… Subscribe to Read MoreAlready a member?
PE Fundraisers Still Riding High The latest numbers for private equity fundraising success—as measured by how many funds hit their target—are impressive to say the least. In 4Q 2015, over 90% of PE funds raised worldwide hit their targets. 88 funds were raised in that time period, according to PitchBook data, amassing $76.4 billion in…
Exactly seven years after the US Federal Reserve (Fed) decided to embark on a zero interest rate policy, the state of the US economy has finally been deemed strong enough to withstand the path towards normalisation. With the 25bps hike wrapped in very cautious forward guidance, financial markets reacted… Subscribe to Read MoreAlready a member?
The secondary market continues to come under pressure, with increased differentiation between the so called haves and have-nots. Flow names fell by roughly 100 bps in November and are off another 55 bps so far this month. At a broader market level, multi-quote institutional term loans also fell by around 100 bps in… Subscribe to
Caution Growing Among PE Investors Assessing investor sentiment is always somewhat of a tricky prospect, but one useful heuristic is the extent to which buyers wax optimistic about their most recent deals. In a recent… Subscribe to Read MoreAlready a member? Log in here...
The commodities rout continued in earnest this week as oil prices hit recent multi year lows, while industrial metal prices also retreated to levels lower than those seen in the depths of the volatility earlier in the year. These developments are not surprisingly translating into further pain for bond investors in resource dependent sectors with both investment…
The average purchase price for large corporate LBO deals is still well below the large-scale deals struck during the buyout boom, but select mega deals are resurfacing. The average purchase price year to date for large corporate LBO deals is around $1.8 billion, slightly behind 2014 levels of $1.9 billion, but far lower… Subscribe to
Global PE Cash Flows for 2015 Already Strong In the first quarter of 2015, private equity firms worldwide have already distributed $168.2 billion back to their limited partners, while calling down $114.3 billion. Those two sums combined produce a net cash flow for 2015 of $53.9 billion already, no less than 32% of last year’s…