1Q23 middle market syndicated lending dropped to US$27bn At US$26.7bn, 1Q23 middle market syndicated lending dropped to its lowest level since the pandemic. The year began on slow footing with depressed M&A activity and lower quality dealflow. Then in March the banking crisis hit, leading to a lot more caution from issuers, sponsors, and lenders….
“Newcomers” to private debt Download PitchBook’s Report here. The private debt market is attracting a lot of new players. New, but not “new” new: If Apollo raises a debut fund in a new strategy, should that fund count as a “first-time fund”? They might be considered newcomers to private debt, for example, but LPs know who…
Direct lending on the rise in Asia-Pacific The strategy is outshining distressed debt in the region, but fundraising for all types of private debt may be more challenging over the next year. Last week saw the Fairmont Singapore play host to our 2023 APAC Forum, with a record number of delegates keen to discuss the…
Looking ahead to Q2 Download PitchBook’s Report here. Q1 is drawing to a close. PitchBook’s updated US PE Breakdown will be released in about two weeks (our 2022 Annual Breakdown is available here), but in the meantime, there’s building sentiment for another down quarter. In his email this morning, Dan Primack was dripping with anticipation about…
BDC AUM climbs to US$273bn BDC market growth expectations slowed in 1Q23, with the majority of respondents (58%) in the Refinitiv LPC Quarterly BDC Survey forecasting that assets under management (AUM) will finish 2023 in the US$275bn-300bn range. Another one-third of survey participants predict that BDC AUM will end the year in the US$300bn-plus range,…
Private debt fairly valued according to investors Institutional investors believe private debt to be fairly valued, according to the latest survey for the Preqin Investor Outlook. In November 2022, 74% of respondents to the survey believed private debt was undervalued or fairly valued…. Subscribe to Read MoreAlready a member? Log in here...
Middle-market valuations down in 2022 Download PitchBook’s Report here. Middle-market multiples peaked much earlier than the overall market, which saw its highest price tags in 2021. That said, middle-market EV/EBITDA multiples continue to subside, according to PitchBook’s US PE Middle Market Report. After peaking at 16.0x in 2019, the headline number came down about a turn…
BDC credit losses expected to top 100bp in 2023 The majority of respondents (68%) in Refinitiv LPC’s Quarterly BDC Survey expect credit losses to top 100bp in 2023, with 31% of survey participants predicting losses above 200bp. The weighted average non-accrual rate for public and private BDCs combined ended 4Q22 at 1.48%, up from 1.26%…
Private debt allocation intentions hit seven-year high Institutional investors are satisfied with their private debt allocations and plan to increase them, according to the latest survey for the latest Preqin Investor Outlook. A growing number of investors surveyed by Preqin aim to boost their long-term allocations to private debt… Subscribe to Read MoreAlready a member?
US pensions dig deep We present some of the key findings from our Investor Report for 2022. US-based public pensions were among the largest allocators to private debt during 2022, though their publicly available data made it much easier to find commitment data for these institutions, making up 13 of the top 15 LPs in…