Middle-market valuations down in 2022 Download PitchBook’s Report here. Middle-market multiples peaked much earlier than the overall market, which saw its highest price tags in 2021. That said, middle-market EV/EBITDA multiples continue to subside, according to PitchBook’s US PE Middle Market Report. After peaking at 16.0x in 2019, the headline number came down about a turn…
BDC credit losses expected to top 100bp in 2023 The majority of respondents (68%) in Refinitiv LPC’s Quarterly BDC Survey expect credit losses to top 100bp in 2023, with 31% of survey participants predicting losses above 200bp. The weighted average non-accrual rate for public and private BDCs combined ended 4Q22 at 1.48%, up from 1.26%…
Private debt allocation intentions hit seven-year high Institutional investors are satisfied with their private debt allocations and plan to increase them, according to the latest survey for the latest Preqin Investor Outlook. A growing number of investors surveyed by Preqin aim to boost their long-term allocations to private debt… Subscribe to Read MoreAlready a member?
US pensions dig deep We present some of the key findings from our Investor Report for 2022. US-based public pensions were among the largest allocators to private debt during 2022, though their publicly available data made it much easier to find commitment data for these institutions, making up 13 of the top 15 LPs in…
Middle-market above pre-Covid levels Download PitchBook’s Report here. Middle-market activity came in at $443.8 billion in 2023, according to PitchBook’s just-released US PE Middle Market Report. That represents a 26% decline from 2021 levels, while deal flow declined by a smaller 21% to 3,314…. Subscribe to Read MoreAlready a member? Log in here...
SVB was a major player in US middle market technology lending Silicon Valley Bank, the fifth largest lender to US middle market technology issuers, collapsed last week. According to Refinitiv LPC data, between 2020 and 2022, SVB agented 35 US middle market technology loans, totaling a combined US$4.8bn in deal volume…. Subscribe to Read MoreAlready
Rising investor interest in special situations and distressed debt An increasing proportion of investors surveyed by Preqin say special situations and distressed present the best opportunities in private debt. According to Preqin’s latest Investor Outlook survey,… Subscribe to Read MoreAlready a member? Log in here...
Reflections on distress Looking back on capital accumulation in recent years, investor anticipation of distressed debt opportunities grew – sometimes without reason. With distress a major talking point again, here are a few observations from a glance at our fundraising data: Waiting for the wave: Much of the recent history of distressed debt fundraising has…
Jumbo outstandings climb to $118B with Cotiviti’s new record deal Cotiviti’s $5.5 billion credit raises outstanding jumbo loan volume to $118 billion, as tracked by KBRA DLD. That figure includes incremental debt for existing jumbo issuers, defined as those with private loans of $1 billion or greater. The number of known companies with outstanding jumbo…
US primary institutional yields are averaging 9.57% in 1Q23 Average primary institutional yields have flattened in the last two quarters after soaring in 3Q22. At 9.57% so far in 1Q23, the average first-lien institutional yield, assuming a three-year term to repayment, is slightly below 4Q22’s 9.62%. While SOFR rates continue to rise, tighter discounts and spreads…