2Q23 US middle market syndicated lending dropped 53% year-over-year US middle market syndicated loan volume reached US$27.8bn in 2Q23, down 53% from 2Q22 and 7% quarter-over-quarter. Sponsored syndicated loan volume was on par with 1Q23, but was down 60% year-over-year, while non-sponsored issuance of US$20.9bn in 2Q23 was 50% lower year-over-year and 10% lower than…
Latest Performance Trends for U.S. MM CLOs Defaulted and deferring exposure across MM CLOs remained low at 0.7% in 1Q23, while deferrables stood at 6.4%. Exposure to assets rated ‘CCC+’ or below by Fitch Issuer Default Rate Equivalency Rating, as described in Appendix 5 of Fitch’s CLOs and Corporate CDO Rating Criteria, registered at 15.8%….
PE’s impending maturity wall Download PitchBook’s Report here. Private equity’s stunted exit market is now several quarters old, and it comes on the heels of a historic run of deal activity. A new PitchBook analyst note looks ahead to an “impending maturity wall” and the ripple effects it could have on the industry…. Subscribe to Read
1H23 U.S. loan volume down 18% y-o-y; 2Q23 totals down 32% y-o-y Bruising market volatility marked by higher interest rates, increased regulatory scrutiny of large corporate M&A deals and lender expectations of greater regulatory oversight among reigonal banks contributed to a significant slow down in the 1H23 US BSL market. Roughly US$571bn of issuance was…
Artificial Intelligence in private debt Although there is a tendency to tag anything as ‘AI’ when possible, it can’t be denied that the technology is making waves. Globally this year, over a third of aggregate deal value raised in private debt went to deals with an artificial intelligence tag, despite just 11 deals taking place…
Filling the void in venture lending Lending to growth and venture-backed firms has been challenging in early 2023, but there are signs of change. The regional banking crisis precipitated by the turmoil that started with Silicon Valley Bank in March must be seen in a larger context – as an accelerant of a mega-trend towards…
MM fundraising is having its moment Download PitchBook’s Report here. Middle-market fundraising is having a moment in the sun. PitchBook’s latest US PE Middle Market Report recorded $49.9 billion raised in MM strategies in Q1, up 70% from Q1 2022. A historical look at fundraising seasonality bodes well for the middle market. Over the past decade,…
How would you characterize the quality of 2Q23 deal supply? One of the main challenges that middle market lenders have faced this year is finding high quality deals. According to Refinitiv LPC’s 3Q23 Middle Market Outlook Survey’s preliminary results, 20% of lenders characterize the 2Q23 supply of deals as having poor quality, while 44% said…
Conditions right for further private debt growth in Asia Although the number of private debt funds raised in Asia from 2020 to 2022 decreased from 47 to 38, aggregate capital raised increased from $8.23bn to $12.15bn. The number of funds raised remained consistent throughout the pandemic…. Subscribe to Read MoreAlready a member? Log in here...
A decent start in the middle market Download PitchBook’s Report here. The middle market got off to a decent start in 2023, though quarterly activity has mostly stalled since the 2021 boom. PitchBook’s just-released US PE Middle Market Report registered $107 billion in Q1 investments, continuing a smooth trend of about ~$110B per quarter since Q4…