Another mixed quarter Download PitchBook’s Report here. US PE activity brought in mixed results in Q2, with deal volume up slightly and value down almost 16%, according to PitchBook’s US PE Breakdown. Dealmaking has declined in four of the past six quarters, making it difficult to ascertain any trends in a recovery. That said, deal volume…
US sponsored middle market direct lending volume increased in 2Q23 Activity picked up in the US middle market direct lending space in 2Q23 but remained at lower levels. At US$16.3bn, sponsored middle market direct lending volume was up 32% from 1Q23 but was down 46% year-over-year. In contrast, the syndicated sponsored market slowed down relative…
Emerging market private debt dealmaking remains steady As emerging markets continue to develop their private debt markets, they present both opportunities and risks for investors looking to tap into their growth. With regions such as India, Southeast Asia, and the Middle East among those targeted by fund managers in 2023, there is a clear desire…
Default Outlook for Middle Market Fitch recorded eight defaults in our Private Monitored Rating (PMR) portfolio in 2022, down from the pandemic-affected years of 2020 and 2021 when we recorded 23 and 18 respectively. YTD defaults through June 2023 total seven, one short of the total in 2022 and ahead of full-year 2018 and 2019…
KBRA DLD Default Index: 2023 forecast is 2.5% for sponsored deals KBRA DLD’s 2023 default forecast is 2.5% for sponsor-backed direct lending loans, equating to roughly 30 defaults against the roughly 1,200 sponsored borrowers in the KBRA DLD Default Index. Table 1 The year-to-date (YTD) sponsored rate is 1.2%, which includes 14 defaults—mainly bankruptcies. Searchlight…
Are the storm clouds receding? Private debt may be in the process of demonstrating its resilience in the face of the latest challenges. One thing that studies consistently show – including our own Perspectives survey, see chart above – is that investors are still scrambling to access private debt. Tough times we may be living…
Rating Trend for Middle Market Issuers Following a modestly positive 2021 in which upgrades in Fitch’s Private Monitored Rating portfolio outpaced downgrades at a rate of around 1.2x, downgrades outpaced upgrades in 2022 at a 1.8x rate as inflation crimped earnings. Downgrades continued to outpace upgrades in 1Q23, with around two downgrades for every upgrade…
A welcome bump in exits Download PitchBook’s Report here. Exit activity rose in Q2 and stopped a four-quarter slide, according to PitchBook’s just-released US PE Breakdown. It wasn’t exactly a resurgence, but was welcome news nonetheless. Exits came to a standstill in Q1, registering just $52.3 billion in total…. Subscribe to Read MoreAlready a member? Log
Firms look for new ways into technology The sector is continuing to grow in popularity, evidenced by recent strategic moves from the likes of SoftBank and BlackRock. The technology sector has proved to be one of the most popular and resilient for private credit lenders ever since the covid-19 pandemic, and the trend shows little…
Growth capital dominates in North American PD deals Almost two thirds of private debt deals since 2020 involved North American portfolio companies, demonstrating the region’s dominance in the asset class. Of the deals involving North American portfolio companies, 33% are growth capital deals, 29% are buyouts and 19% add-ons, followed by recapitalisations (13%)…. Subscribe to