B-rated yield premium widens for US issuers in 2Q23 Primary loan yields in the US institutional loan market have widened slightly this quarter. However, when looking across issuer ratings, riskier credits have seen a bigger increase. At an average of 8.32% so far this quarter, the average primary yield on first-lien institutional term loans… Subscribe
US PE dry powder down Download PitchBook’s Report here. As much dry powder is floating around the PE market, the mountain is shrinking at the moment. According to PitchBook’s Q1 2023 US PE Breakdown, unspent capital accounts for less than 30% of total PE AUM. It’s the first time in two decades where that metric has…
Private debt fundraising holds up in Q1 2023 In Q1 2023, 35 private debt funds worldwide raised $34.8bn, 90% of the capital raised in Q1 a year earlier, when 51 vehicles raised aggregate capital of $35.4bn. This indicates a slightly slower but still robust pace of fundraising, despite the difficult market and persistently challenging operating…
Europe’s pros and cons Private Debt Investor’s Europe Summit 2023 in London last week reflected on the state of play in the region. Here are five key observations. 1. Increasing moves by private credit firms into net asset value-based financing are in keeping with the growing recognition that private credit is the natural supporter of…
A shift away from mega funds? Download PitchBook’s Report here. Most PE metrics got off to a slow start in Q1, but middle market fundraising stayed strong. According to PitchBook’s Q1 2023 US PE Breakdown, 41 MM funds closed in Q1, worth a combined $55 billion. The past four years have all seen at least 200…
Interest coverage ratios on new loans remain well below year-ago levels Against a backdrop of sharply higher interest rates in the last year, interest coverage ratios have moved lower. The average interest coverage ratio of 2.45x on new middle market sponsored deals in 1Q23 was well below the 3.07x posted a year earlier… Subscribe to
Distressed debt fundraising up as GPs seek $66.5bn Distressed debt funds are seeing more interest from LPs in the wake of recent bank collapses and a persistently challenging operating environment. While seven distressed debt funds closed in the first quarter of 2023, raising a total of $5.2bn, Preqin is currently tracking 85 distressed debt funds…
Subordinated debt bucks fundraising trend The strategy appears to be claiming market share as fundraising shows signs of coming under pressure. Largely as a result of the denominator effect, but also due to investors taking stock of a challenging economic and geopolitical situation, it was always feared that 2023 might turn out to be a…
US institutional primary yields widen to 10.26% in 2Q23TD After plummeting in March, activity has picked up in the institutional market. However, issuers are facing higher yields on average so far this quarter. After a huge jump in 3Q22, average yields were relatively flat in the last two quarters, as higher base rates were compensated…
Corporate M&A multiples have eased Download PitchBook’s Report here. Corporate M&A multiples have eased to decade lows, according to PitchBook’s Q1 2023 Global M&A Report. Last year’s multiple settled at 8.5x, down from 10x in 2021. A quarter into 2023, multiples continue to drop, now down to 7.7x. It’s only three months’ worth of data, but…