LPs: over-allocated but still optimistic Our Perspectives 2023 study reveals some practical issues for investors but a determination to continue committing to private debt due to its strong performance. As we head through the early months of 2023, some 18 percent of limited partners currently describe themselves as over-allocated to private debt…. Subscribe to Read
There was 4.1x more MM LBO volume in the direct lending market vs. syndicated market in 2022 With very challenging conditions in the syndicated loan market, more and more sponsors turned to the direct lending market for funds in 2022. Even in the fourth quarter, when direct lending contracted, the ratio of direct to syndicated…
The stalled exit environment Download PitchBook’s Report here. PitchBook’s latest US PE Breakdown, the annual version, showed a seismic decline in PE exits last year. Estimated exit volume fell by 28% while exit value fell a much sharper 63%. In all, PitchBook estimates $322.9 billion in exit value, which is the lowest total since 2013…. Subscribe
Private debt dry powder balanced with AUM Private debt dry powder continues to rise in line with the growth of assets under management (AUM) over 2022, although the ratio of dry powder to AUM fell slightly in the first half of 2022. As of June 2022, dry powder at managers based in Europe, North America…
Rates become chief performance concern Inflation and interest rates enter investors’ list of top three worries this year, as fears of a recession persist. Rising interest rates and inflation have become the key concerns for investors taking part in Private Debt Investor’s LP Perspectives 2023 Study, for the first time pushing extreme market valuations out…
US secondary market rallies to begin the year The US secondary loan market has rallied to start the year. The LPC 100 cohort of the largest, most widely quoted loans is up 142bp so far in January to 92.7, and middle market loans are 34bp higher to the 92.8 context. Volatility left a vastly altered…
2022: The year of the smaller deal Download PitchBook’s Report here. A down year, to be sure, but a healthy one by historical standards. PitchBook’s just-released US PE Breakdown, the annual version, estimates $1.01 trillion in capital invested in 2022. That’s down from 2021’s $1.26 trillion reading, but it’s another $1T showing nonetheless. More than half…
Private debt funds grow larger in slower market Private debt fundraising slowed down in 2022. The number of funds that raised capital fell 30% from 283 in 2021 to 199 in 2022. However, the average size of private debt funds has grown to a record $1.3bn…. Subscribe to Read MoreAlready a member? Log in here...
On the minds of LPs Over-allocation, rising interest rates and ESG are some of the key investor priorities in 2023. Below we provide a sneaky peek at a few of the key findings from our latest Perspectives study into limited partner attitudes. Perspectives accompanies the February 2023 issue of Private Debt Investor…. Subscribe to Read
Time to move out of the mainstream As the plain vanilla part of the private debt market comes under pressure, investors are turning their attention to more specialised approaches. As we usher in 2023, PDI has been canvassing industry sources to glean a sense of the prevailing mood. Some of these conversations will make their…