Mega funds exert dominance in US buyouts Read Preqin’s ‘Buyouts in North America: A Preqin Primer‘. The average size of US-focused buyout funds more than doubled from 2021 to 2023 to $750.7mn (aggregate $95.3bn), driven by a big increase in the very largest funds, according to Preqin data…. Login to Read More...
Do you expect to meet your lending goals this year? Middle market lenders were asked in a recent LPC survey if they expect to meet their lending goals this year…. Login to Read More...
Default Rate Rises in Fitch’s U.S. Privately Monitored Corporate Ratings Portfolio Click here to learn more. The default rate for Fitch’s corporate portfolio of U.S. Privately Monitored Ratings (PMR) continues to rise despite better-than-expected resilience and growth of the U.S. economy as issuers continue to struggle with elevated interest rates and impending loan maturities…. Login
U.S. BDC Earnings, Credit Headwinds to Persist in 2024 Fitch-rated U.S. business development companies (BDCs) face persistent headwinds in 2024, with rising paid-in-kind (PIK) income and continued markdowns of investments during 1Q24 signaling additional credit issues and resultant net investment income (NII) pressure…. Login to Read More...
What are middle market lenders top 3 concerns for the remainder of the year? Middle market lenders were asked in a recent LPC survey what are their top 3 concerns for the remainder of 2024…. Login to Read More...
‘Grace period’ on road to net zero Private debt has new guidelines as it seeks credibility in its response to climate change. The Institutional Investors Group on Climate Change – formed in 2001 as a forum for collaboration between pension funds and asset managers on climate change issues – has published the first net-zero guidelines…
Distressed debt leads Preqin’s performance forecasts Preqin forecasts that returns from private debt will remain steady up to 2028 at 9.8% per annum (a drop of just 0.1% from the 2019-2022 period). Direct lending returns are forecast to drop to 7.3% for 2022-2028, down from 8.6% for 2019-2022, reflecting a focus on more conservative loans…
Boosted by refinancing activity, 1H24 sponsored loan volume at highest level since 2H21 Nearly US$300bn, 1H24 sponsored loan volume to date represents the largest half year total since 2H21 and a 56% increase over the same period last year…. Login to Read More...
Fitch’s Private Middle Market Portfolio, Rating Activity Download FitchRating’s Report here. The default rate in Fitch’s PMR portfolio climbed marginally in 1Q24, reaching 4.1% from 3.7% in the previous quarter, following one additional net default…. Login to Read More...
The syndicated fightback As expected, the BSL market is retaking some of the ground lost to direct lending for larger deals. A recent research note from Alcentra contained some interesting reflections arising from the broadly syndicated loan fightback against direct lending in the larger loan arena…. Login to Read More...