Infrastructure seeks to weather the storm When the economy turns, infrastructure investment has often been seen as a safe harbour from tailwinds affecting other parts of the market. Infrastructure projects are typically long-term investments with government support, usually fulfilling essential needs which consumers cannot easily cut out of their budgets…. Subscribe to Read MoreAlready a
How are PE returns stacking up across private capital overall? Given the tumultuous market environment of the past 18 months and counting, how are the latest private capital returns looking? With preliminary data as of the end of March of this year, PitchBook’s latest performance figures help both confirm classic traits of private capital strategies’…
Private debt deal making low in H1 2023 It’s been a tough start to the year for private debt, as the number of private debt transactions dropped to its lowest level in a decade. In the first half of 2023, there were 259 deals and aggregate deal value was $38bn, allowing for a delay in…
Sponsored large corporate direct lending volume dropped 28% in 2Q23 US sponsored large corporate direct lending loan volume totaled US$12.5bn in 2Q23, 28% lower than 1Q23’s level. The US$12.5bn total represented a 17% share of overall US large corporate sponsored loan volume, its lowest share since 3Q21…. Subscribe to Read MoreAlready a member? Log in
How Might MM CLO Note Ratings Fare Amid High Rates and EBITDA Pressures? To assess the effect of higher interest rates, Fitch applied a rate of 5.5%, and 6.5% to represent a longer rate hike cycle. These rate stresses were combined with EBITDA haircuts to represent cost pressures on loan issuers as a result of…
How Have BDC Funding Profiles Trended? BDCs took advantage of strong capital market conditions moving out of the pandemic to issue record amounts of unsecured debt, which enhanced funding flexibility and extended funding durations…. Subscribe to Read MoreAlready a member? Log in here...
Big fund fatigue Download PitchBook’s Report here. Last week we mentioned the overall fundraising slowdown, which was highlighted in PitchBook’s US PE Breakdown. Much of that is due to fewer mega fund closings. Many are still on the market, but firms like Blackstone, TPG and Carlyle have acknowledged their latest flagships will be smaller than anticipated….
North America direct lending dry power reaches record levels Direct lending dry powder in North America hit a record breaking $123.9bn as of July 2023. While displaying gradual growth from 2021 to 2022, the last six months saw a 16% increase, the largest jump in nearly five years. Though private debt has not been immune…
Interest coverage ratios move lower Interest coverage ratios have come come under pressure as base rates have moved sharply higher in the last 15 months. The average interest coverage ratio on new middle market sponsored loans slipped to 2.20x in 2Q23, the lowest level since LPC started tracking this data in 2018…. Subscribe to Read
Investors flock to the middle As previously highlighted by Lead Left, and supported by our fundraising data, junior capital strategies are becoming increasingly popular. In last week’s version of the “Case for Junior Capital”, Lead Left drew attention to some of the positive characteristics of this type of investment in today’s environment including healthy cash/equity…