Big fund fatigue Download PitchBook’s Report here. Last week we mentioned the overall fundraising slowdown, which was highlighted in PitchBook’s US PE Breakdown. Much of that is due to fewer mega fund closings. Many are still on the market, but firms like Blackstone, TPG and Carlyle have acknowledged their latest flagships will be smaller than anticipated….
North America direct lending dry power reaches record levels Direct lending dry powder in North America hit a record breaking $123.9bn as of July 2023. While displaying gradual growth from 2021 to 2022, the last six months saw a 16% increase, the largest jump in nearly five years. Though private debt has not been immune…
Interest coverage ratios move lower Interest coverage ratios have come come under pressure as base rates have moved sharply higher in the last 15 months. The average interest coverage ratio on new middle market sponsored loans slipped to 2.20x in 2Q23, the lowest level since LPC started tracking this data in 2018…. Subscribe to Read
Investors flock to the middle As previously highlighted by Lead Left, and supported by our fundraising data, junior capital strategies are becoming increasingly popular. In last week’s version of the “Case for Junior Capital”, Lead Left drew attention to some of the positive characteristics of this type of investment in today’s environment including healthy cash/equity…
Fundraising slowdown Download PitchBook’s Report here. Fundraising is in a slowdown, according to PitchBook’s US PE Breakdown. Through H1 2023, about $153 billion has been raised across 160 funds. Compared to last year, those paces are about 25% slower and 15% slower, respectively…. Subscribe to Read MoreAlready a member? Log in here...
US unitranche volume tallies under US$10bn in 2Q23 as jumbo deals become scarcer US unitranche volume sank further in 2Q23, totaling US$9.4bn, the first time it tallied less than US$10bn since 2Q20. Large corporate unitranche volume totaled only US$5.4bn, the lowest since 4Q20…. Subscribe to Read MoreAlready a member? Log in here...
Private debt fundraising in North America holds up amid macroeconomic uncertainty The number of private debt funds closing in North America has remained steady with a slight increase during Q2 2023, as numbers increased from 18 to 20 compared to Q1 this year. Nevertheless, aggregate capital raised fell to $20.91bn in Q2 from $31.98bn in…
How Have BDCs Performed Due to Rapidly Rising Interest Rates? BDCs were well positioned to benefit from rising rates, given largely floating rate portfolios and the increase in fixed-rate funding following meaningful unsecured debt issuance in 2H20 through 1H22…. Subscribe to Read MoreAlready a member? Log in here...
Fundraising: Down but not out Capital raising has proved a tough task so far this year, but investor support may be about to return. On the face of it, the fundraising market for private debt looks rather gloomy. In common with similar findings across the alternative asset universe, the private debt market saw a marked…
KBRA DLD Default Forecasts for Liquid Credit: 3.25% ($45B) for HY, 4.5% ($65B) for BSL KBRA DLD is forecasting a 3.25% default rate by volume (4% by number) for high yield by year end, and a 4.5% rate for syndicated loans (5.5% by number). That equates to nearly $45 billion of HY volume and puts…