Median PE Hold Times for the U.S. Middle Market Drop For the first time in years, private equity firms saw their U.S. median hold periods for middle-market portfolio companies decline over the past couple years. After climbing to unprecedented highs in 2014—six years for companies that were later… Subscribe to Read MoreAlready a member? Log
Last year the Markit iBoxx € Banks index was one of the outperforming bond sectors in Europe having returned 1.0%. The index which is largely made up of bonds issued by European banks, even managed to outperform defensive sectors such as Healthcare and Utilities, while Europe’s ongoing regulatory oversight and relaxed monetary… Subscribe to Read
Will Aging Portfolios Still Drive PE Exits in 2016? One of the primary storylines behind the private equity sellers’ market of the past few years has been the need for funds with aging holdings to liquidate as they threaten to drag down overall returns. As PitchBook data illustrates, as of the end of 2015, close…
Libor floors, used to guarantee a minimum spread to investors in a low rate environment are now a major theme in the market given rising interest rates. In 2015, 98% of institutional term loans were issued with a Libor floor, the bulk of which were done… Subscribe to Read MoreAlready a member? Log in here...
The economies of Italy and China don’t appear to have much in common. Italy’s government would welcome a GDP growth rate of 1%, while China expands less than 7% and investors take flight. One is a sclerotic, decaying Western country, the other is a dynamic Asian tiger. Such is the conventional wisdom. But look beyond…
Middle market lending failed to impress in 2015 as both the sponsored and non-sponsored markets were down roughly 30% year-over-year. In the non-sponsored market, volatility spooked issuers in the second half of the year causing many to hold off… Subscribe to Read MoreAlready a member? Log in here...
Is There a Glut of Private Equity Firms? Since the turn of the century, there has been a steady surge in the number of private equity firms that are active worldwide. From 1,545 in 2000, the number has crested to 3,918, an increase of over 153%. As was perhaps to be expected, the rate… Subscribe
If European credit investors had to name two names damaged by the precipitous fall in commodity prices, it is likely that Glencore and Anglo American would top the poll. The two mining firms have seen their credit spreads widen dramatically and are now quoted upfront, the only credits in the Markit iTraxx Europe… Subscribe to
Private equity sponsors once again took a back seat to leveraged corporate issuers, struggling to garner 42% of total leveraged loan volume amid limited deal making opportunities. With demand for assets at a premium for much of the year, PE sponsors wrestled with… Subscribe to Read MoreAlready a member? Log in here...
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?