Fundraising hits a new low Raising capital in the first half of this year was even tougher than at the height of the pandemic, but fund sizes are at all-time highs. First-half fundraising among private debt funds in 2022 is the lowest it has been in our sample at $91.9 billion, even slightly lower than…
The healthcare sector led sponsored MM lending in 1H22 Overall sponsored middle market lending activity (comprised of both direct lending and syndicated volume) was robust again in 2Q22, climbing 42% to US$44bn. The healthcare, business services and technology sectors remained in the top 3 spots in the most recent quarter, cementing their lead in the…
Healthy deal flow for take-privates Download PitchBook’s Report here. 2022 is shaping up for a healthy year for take-privates, according to PitchBook’s latest US PE Breakdown. Almost $60 billion worth of transactions closed in H1, which is already past 2020 totals. And there have been relatively few of them, too. Just 18 so far this year,…
Growth of mega funds masks smaller fund activity In keeping with the growing trend of consolidation within the private debt industry, in Q2 2022 the largest funds continued to attract most of the aggregate capital targeted. Compared to the same time a year earlier (Q2 2021), the proportion of funds in market targeting aggregate capital…
Fewer first-time funds Download PitchBook’s Report here. Last year was a better year for first-time fundraisers, according to PitchBook’s latest US PE Breakdown. Rookie fundraising is slowing compared to last year, in part because LPs are prioritizing existing GP relationships, especially their bigger ones. Through June, 27 first-time funds have closed, worth a combined $5.2 billion….
Middle market unitranche leverage declines in 2Q22 Leverage on middle market unitranche loans tightened to 5.57x in 2Q22, its lowest level since 3Q20, as it continued to retreat from the record highs seen in 2021. From a pricing perspective, blended spreads were flat for middle market unitranches, averaging 600bp in the most recent quarter…. Subscribe
Pushing aside senior debt When is senior debt really senior debt? A new report into so-called ‘priming’ brings this into question. Last year saw senior debt shoot up in popularity, accounting for a record 45 percent of total private debt fundraising (see chart). But is senior debt really senior? It may sound like an odd…
Rapid growth in fundraising of Asian private debt funds There has been a rapid uptake in fundraising by private debt funds in Asia over the past year. The aggregate capital raised by private debt funds in Asia was $6.3bn in Q2 of 2022, growing over 6x from the $1bn raised in the same quarter last…
Private lending volume posts strong quarter, but a slowdown lies ahead Direct Lending Deals’ Private Data set picked up $56.9 billion in sponsored U.S. loan volume during the second quarter, to rebound from a weak first quarter of $20 billion, and beat the $40.4 billion recorded during the private lending binge that drove the final…
A tricky fundraising trail Download PitchBook’s Report here. PE fundraising is slowing, according to PitchBook’s latest US PE Breakdown, as a whole and in the middle market. For the past three years, the middle market has raised at least $150 billion, but that might not stretch to a fourth consecutive year. $71.3 billion has been raised…