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
After a temperate first half, buyout deals to hit market in 3Q15 are pushing the boundaries with regards to leverage levels. Although deal flow remains light, large corporate LBO leverage levels have risen to 6.3 times so far in 3Q15, up from 6.01 and 5.99 times respectively in 2Q15 and 1Q15. The upward trend is driven by…
Commodities strain Latam corporate credit The recent commodity downturn has sent Latam corporate bond yields surging, just as the US looks set to raise interest rates. Brazil’s 5-yr CDS spread has widened 31bps over the past week as commodity slump hits Latam corporate bond yields have diverged from their emerging… Subscribe to Read MoreAlready a
Take-privates making a comeback? One of the big differences between today’s M&A boom and 2007’s comes down to which buyers were involved. Almost a decade ago, PE firms were the muscle behind M&A. Mega-buyouts in the $10B+ category were common, inflating overall deal activity to record levels. Today’s market is… Subscribe to Read MoreAlready a
M&A loan volume gets another boost via $27B bridge; Pipeline north of $90 billion The M&A loan market – and more specifically investment grade lenders – got a nice boost in the form of a $27 billion bridge loan backing Anthem Inc.’s $54.2 billion acquisition of Cigna Corp this week. The announced… Subscribe to Read MoreAlready a
The all-important deadline of July 20 has passed without incident, Greece having redeemed its debt to the ECB with the help of a bridging loan. This doesn’t mean the crisis in Greece is resolved – far from it – but it does give the market some breathing space. We remarked last week that China may…
Secondary buyouts are down by value but consistent by volume. With news of First Data going public, it’s worth remembering how few 2006-2008 PE investments ended up transferring to other PE sponsors, at least $10B+ companies. Realistically, those buyouts needed to be exited via IPOs or, in some cases, through… Subscribe to Read MoreAlready a