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…
Puerto Rico’s (PR) development bank successfully made a $354m debt payment this week, closely staving off defaulting on its GDB bonds. PR’s 8% 2035 GO bond saw its price climb 2.5pts to 75.00 (cash basis to par) according to Markit’s municipal bond pricing service. The jump marked a new two… Subscribe to Read MoreAlready a
Arrangers continue to show some discipline with regards to structuring LBO deals as the year comes closer to an end. The share of buyout deals that are levered seven times and greater has fallen to only 14% in 2015, down from 26% last year and down from 39% at the peak of the… Subscribe to
Could PE Return Multiples Begin to Stagnate? Driven by the seller’s market over the past few years, recent private equity fund vintages have seen their return multiples improve considerably. Distributions back to limited partners have risen to staggering levels, with 2014 seeing no less than $467.8 billion alone…. Subscribe to Read MoreAlready a member? Log in here...