After a slow third quarter, 2015 has only seen 32 private equity-sponsored initial public offerings (IPO), raising a combined $7 billion. The IPO window for PE sponsors in the fourth quarter of 2015 may be narrowing, although it’s unclear how much concern that should really cause for now. After all, even though an initially disappointing…
The last few months have proven to be a volatile time for the HY market, highlighting the risks involved in the asset class. But with significant yields on offer and different markets to explore, HY bonds remain a quandary for investors. The recent volatility can be illustrated by looking at recent returns. September saw US…
U.S. Middle Market Continues Healthy Plateau The U.S. private equity middle market remains strong, tracking relatively within the record ranges of last year. At 474 closed transactions in Q3 for a total of $80 billion in invested capital, 2015 is now at just over 1,400 deals and a total of $250 billion. That puts it…
Middle market volume showed a dramatic decline in 3Q15. Loan issuance only reached $27.4 billion, a 36% drop quarter-over-quarter and a 42% drop year-over-year. Non-sponsored issuance showed the biggest drop off as issuers clearly became spooked by broader market volatility and a fear of a global macroeconomic slowdown. … Subscribe to Read MoreAlready a member? Log in
Eastern Europe is generally viewed by credit investors as one of the safer segments of increasingly shaky emerging markets asset class. But the aggressive presence of Russia poses risks, as its neighbours know all too well. On September 23rd the Republic of Ukraine failed to pay principal on its $500m 6.875% coupon bond. A drawn…
US Leveraged lending tumbled in 3Q15 as market volatility fueled a flight to quality and heightened risk aversion. At less than $180 billion, 3Q15 leveraged lending was down nearly 50% compared to 2Q15 totals to bring 1-3Q15 totals to $753 billion, down 24% compared to the same time last year. Most of the shortfall was rooted…
Median Multiples for U.S. PE Wane Further Even taken with a grain of salt, the decline in median EBITDA multiples for U.S. private equity buyouts has become more and more pronounced as third quarter numbers roll in. Faced with the headache of high valuations, PE firms have not only been dialing down activity—albeit at a…
In recent years, the credit markets have become accustomed to volatility, despite the best efforts of central banks to tame the beast. But where it was sovereigns and banks that were the instigators during the crises of 2007-2012, in 2015 it is the commodities sector that is providing the oscillations. Nowhere was this more evident…
Volatility returned to the loan market in 3Q15 to contribute to a deeper and more sustained summer slowdown which saw just over $401billion of issuance work its way through syndication. This marked a decline of nearly 29 percent compared to 2Q15 figures and an 11 percent drop compared to the year ago period. Similarly, at less than $1.4…
Overall Optimistic, Investors See Choppiness Ahead Private equity firms typically target companies that are in trouble. It’s the heart of the traditional buyout model, which, although shifting as the industry matures, remains the core of PE dealmaking. However, the relative health of target companies can shift considerably depending on overall deal trends—nowadays is no exception….