US market unitranche spreads decreased in 3Q23 In 3Q23, US unitranche blended spreads declined for the second straight quarter. The average unitranche blended spread, including both middle market and large corporate deals, was 625bp in 3Q23, 29bp lower than 2Q23’s average. This aligned with Refinitiv LPC’s 4Q23… Subscribe to Read MoreAlready a member? Log in
Private debt dry powder at all time high The post-pandemic monetary environment has spurred the growth of the global private debt industry. Assets under management, standing at $1.6tn as of March 2023, almost doubled compared to the end of 2019…. Subscribe to Read MoreAlready a member? Log in here...
1Q-3Q23 US Syndicated ABL volume up 5% to US$127.0bn US syndicated ABL volume was up 5% to US$127.0 billion during 1Q-3Q23. The first nine months of 2023 set a new high for the US ABL market, however, a significant portion was completed during the first half as borrowers adopted SOFR based constructs. Only US$12.9 billion…
A historically slow exit market Download PitchBook’s Report here. PE exit activity resumed its downward trend in Q3, according to PitchBook’s Q3 US PE Breakdown. $44.1 billion was exited last quarter, the lowest quarterly total in ten years, exempting the COVID quarter of Q2 2020. While that’s very low, it could also be a bottoming out….
APAC-focused private debt fundraising moderates after blockbuster fund closes Aggregate capital raised by APAC-focused private debt funds fell in 2023 amid uncertainties around interest rates. Fifteen funds raised $3.2bn to date this year, in contrast to 2022, when 41 funds raised $11.7bn, and 2021, when 42 funds raised $10.6bn…. Subscribe to Read MoreAlready a member?
A Disappointing Q3 Download PitchBook’s Report here. The first half of the year showed teasingly positive trends for private equity, at least from a data perspective. The third quarter didn’t live up to those expectation. PitchBook’s Q3 US PE Breakdown saw a decline in dealmaking activity—below the $200 billion mark for the first time since COVID—and deal value…
Near-term BDC loan maturities are limited Credit quality is being closely watched in the private credit markets amid the large increase in interest rates during the last eighteen months. So far, the impact on borrowers from higher rates has not produced any major uptick in defaults…. Subscribe to Read MoreAlready a member? Log in here...
South Korea sees private debt interest in medical devices industry Private debt is growing fast in South Korea and shows no signs of slowing. Despite the relative immaturity of the market, a number of US private debt firms have set up shop in the country. There are now 119 active PD investors in Korea. Deal…
Patience needed for next NPL wave No-one should expect a sudden 2008-style surge, but economic headwinds are expected to eventually translate to a promising opportunity set. Non-performing loans have been one of the hottest topics in the private debt space ever since the 2008 financial crisis led to an unprecedented movement of bad debts off…
Distressed debt fundraising Download PitchBook’s Report here. While private debt fundraising had a strong first half, distressed debt fundraising was exempt from that trend, according to PitchBook’s H1 2023 Global Private Debt Report. It’s a sudden drop-off from a trend that goes back more than a decade. Through H1, three distressed debt funds have closed worth…