MM fundraising: “Challenging but not impossible” Download PitchBook’s Report here. PitchBook’s latest US PE Middle Market Report is now out. Many of the overall deal trends mirror those of the broader PE market. One standout figure was early 2022 fundraising, which is off to a slow start. Only 33 middle-market funds closed in Q1, a visibly…
Direct lending funds closing above targets Direct lending funds continue to attract investors, with the average percentage of target size at final close increasing dramatically from 108% in 2019 to 145% YTD 2022. However, the average time taken to raise a fund has also increased, from 21 months in 2019 to a record high of…
Business services: reliability amid volatility ‘Safe and steady’ is a tag that might be readily applied to the sector, and that’s just fine as far as investors are concerned. Alongside technology and healthcare, business services has emerged as a go-to sector for credit funders attracted by its reliable cashflows and sticky customer relationships. But unlike…
Buyout loan issuance has slowed Download PitchBook’s Report here. Leveraged loan issuance slowed noticeably in Q2, according to PitchBook’s latest Quantitative Perspectives: US PE enters a new regime. While still north of historical levels, the rolling sum fell to almost $118 billion in the second quarter, down from almost $150 billion just a quarter ago. Prior…
Distressed debt funds witness dry powder build-up post Covid-19 recession Dry powder for distressed debt globally has been growing over the past decade. In September 2021, dry powder made up 35% of the total distressed debt AUM – higher than its historical 10-year average of 32%. This build-up is likely due to the record capital…
Claiming a bigger slice for alternatives A new study suggests its time for portfolio allocators to make some changes in the face of economic headwinds. A recent piece of analysis from KKR suggests that the classic 60/40 stocks/bonds portfolio construction model may have had its day in the face of a challenging new environment. The…
After a record 2021, mid-market technology sector volume totals US$5.5bn so far this year So far this year US middle market technology sector volume totals a lower US$5.5bn through mid-May. That number includes US$2.3bn of direct lender volume tallied through the end of March. This comes after a record US$34.2bn was loaned out to middle…
Cash flows were positive last year Download PitchBook’s Report here. PE distributions outpaced capital calls in 2021, according to PitchBook’s 2022 Global Fund Performance Report. Not by much: LPs collected $13.5 billion in net cash flow last year, reflecting $572.4 billion in outbound contributions and $585.9 billion transferred back to fund investors. Both datapoints are substantially…
European deals buffeted by adverse backdrop Unitranche transactions in the region fell back in Q1 2022 as economic headwinds reverse the growth seen through 2021. In its latest MidCapMonitor, Houlihan Lokey recorded 103 unitranche deals in Europe during the first quarter of the year, down from 143 seen in the final quarter of 2021. Despite…
Strong performance by Asian private debt funds Asian funds significantly lag North America and Europe in AUM despite strong performance. The median net IRR of Asian private debt funds of vintages 2012-2019 is 12.51%, beating their peers in North America (10.00%) and Europe (8.90%)…. Subscribe to Read MoreAlready a member? Log in here...