Artificial Intelligence in private debt Although there is a tendency to tag anything as ‘AI’ when possible, it can’t be denied that the technology is making waves. Globally this year, over a third of aggregate deal value raised in private debt went to deals with an artificial intelligence tag, despite just 11 deals taking place…
Filling the void in venture lending Lending to growth and venture-backed firms has been challenging in early 2023, but there are signs of change. The regional banking crisis precipitated by the turmoil that started with Silicon Valley Bank in March must be seen in a larger context – as an accelerant of a mega-trend towards…
MM fundraising is having its moment Download PitchBook’s Report here. Middle-market fundraising is having a moment in the sun. PitchBook’s latest US PE Middle Market Report recorded $49.9 billion raised in MM strategies in Q1, up 70% from Q1 2022. A historical look at fundraising seasonality bodes well for the middle market. Over the past decade,…
How would you characterize the quality of 2Q23 deal supply? One of the main challenges that middle market lenders have faced this year is finding high quality deals. According to Refinitiv LPC’s 3Q23 Middle Market Outlook Survey’s preliminary results, 20% of lenders characterize the 2Q23 supply of deals as having poor quality, while 44% said…
Conditions right for further private debt growth in Asia Although the number of private debt funds raised in Asia from 2020 to 2022 decreased from 47 to 38, aggregate capital raised increased from $8.23bn to $12.15bn. The number of funds raised remained consistent throughout the pandemic…. Subscribe to Read MoreAlready a member? Log in here...
A decent start in the middle market Download PitchBook’s Report here. The middle market got off to a decent start in 2023, though quarterly activity has mostly stalled since the 2021 boom. PitchBook’s just-released US PE Middle Market Report registered $107 billion in Q1 investments, continuing a smooth trend of about ~$110B per quarter since Q4…
APAC private debt AUM sees steady growth APAC’s private debt market, though smaller than North America’s, shouldn’t be overlooked. Assets under management (AUM) have grown steadily, exceeding previous projections, according to the Preqin Alternatives in APAC 2023 Report. As of September 2022, AUM stood at $94.8bn, up 28% from December 2021, and 56% from December…
BDC portfolio marks expected to move moderately lower BDC portfolio companies are being closely monitored to gauge stress as a result of the higher interest rate environment, the degree of pressure on margins and declining interest coverage ratios for over-levered borrowers. The most recent, indicative data available does not show any significant deterioration yet although…
Changes from a decade of fundraising In the June issue of Private Debt Investor, in which we celebrated its tenth anniversary, we reflected on key trends in fundraising over that period by an examination of our PDI 100 ranking of top fundraisers. Below are four of our observations. Size matters: The giant managers who are…
Defaults in Fitch’s Private MM Portfolio Tick Higher Following a sharp increase in 2020 and 2021 due to the pandemic, defaults were largely subdued in 2022 in Fitch’s private middle market portfolio… Subscribe to Read MoreAlready a member? Log in here...