M&A activity in the syndicated loan market is as strong as ever, however the volume is simply not coming from buyout deals. Private equity shops continue to struggle with winning and making buyout deals work given lofty valuations and extreme competition. Completed LBO… Subscribe to Read MoreAlready a member? Log in here...
Opportunity Ahead for PE? The finance community has been hit hard the past few weeks. Even long-term asset classes like venture are keeping tabs on short-term fluctuations in the market. Private equity doesn’t seem as concerned, and shouldn’t be. The biblical seller’s market that began in… Subscribe to Read MoreAlready a member? Log in here...
We remarked last week that emerging markets could face a difficult time ahead. Well, we didn’t have to wait long before the early maneuvers in a possible currency war had an impact on sovereign CDS spreads. Vietnam was one of the first to move by devaluing its currency and widening the trading… Subscribe to Read
It’s become common knowledge (and maybe conventional wisdom) that PE buyers are much more disciplined today than they were in 2007. One useful comparison is the amount of PE capital spent versus the amount raised. Going back to 2011, note the correlation between the two totals and how little they deviate from one another. This suggests…
There is no shortage of yield hungry investors in the middle market however second lien volume for smaller issuers has not kept pace with demand in 2015. Year to date, middle market second lien volume has only reached $1.6 billion, which is over 70% lower than the $5.6 billion logged… Subscribe to Read MoreAlready a
Back in 2010, Brazil’s finance minister Guido Mantega warned that the world was in the midst of a “currency war” in the wake of US quantitative easing. The term is now back in vogue after China made the shock decision to devalue its currency. China has a “dirty” peg against the US dollar, and the…
Do holding periods go down from here? For the first time since the crisis, the median holding period for private equity is heading downward. For all exits, the H1 median came in at 5.25 years, a sharp fall from the 6.12 median at year end. Companies that were… Subscribe to Read MoreAlready a member? Log
The majority of banks surveyed reported little change in the last three months with only 13 percent of domestic banks reporting easing terms to larger firms, according to the latest Federal Reserve Senior Loan Officer Opinion Survey. This is up slightly from 10 percent at this time… Subscribe to Read MoreAlready a member? Log in here...
Spain is often held up as an example of how austerity works, and Markit data published on August 5 provides some support to this view. Markit PMIs for August showed that Spain was leading the way in the eurozone’s economic expansion. There are major questions over the country’s labour market – unemployment remains at stratospheric…
Another big year in the works The U.S. middle market is heading toward another big year. Through H1, 895 deals worth a combined $159 billion have closed, not far off the pace of last year’s records. This despite another jump in median purchase price multiples, which hit 10.5x through the end of June. Valuations have risen… Subscribe