Moving into the middle Positioned in between senior debt and equity, subordinated debt providers are catching the attention of investors. As the world enters a new economic era, firms need new financing options to help them grow in a more challenging environment. Increasingly, hybrid debt/equity and subordinated debt are being used by corporates which want…
Lofty yields — 12%— and little supply to pressure unitranche spreads Unitranche yields in the KBRA DLD Private Data portfolio averaged 12% for the 90-day period ended Jan. 31, up from 6.6% a year ago. The current reading is the highest in our two-year, $270 billion library and potentially the highest since the GCC. The…
A decent year in Europe Download PitchBook’s Report here. European PE activity was stalwart in 2022, at least judging by year-end numbers. PitchBook’s European PE Breakdown paints a resilient picture, estimating small jumps in both deal flow and overall value. Our analysts are estimating a 13% bump in transactions and a 1% bump in value over…
Downward price flexes in the institutional market are on the rise February has seen an increase in downward price flexes in the institutional loan market with 12 price cuts on first-lien term loans reported so far. This is up from the 9 reported for all January and on par with November and December totals. Midway…
Private debt deal activity declined over 2022, large managers can be selective The momentum around global private debt deal activity continues to decelerate. The number of deals fell 39.8% in 2022, to 896 deals from 1488 in 2021. Occasional peaks notwithstanding, deal value slowed from a record high of $99.8bn in Q2 2021 to $43.4bn…
Fundraising holds up well The volume of capital gathered remained at healthy levels last year, although the number of funds closed sank to new lows. It wasn’t a record-breaking fundraising year for private debt in 2022 but, with concerns about the economy growing, there were few signs of limited partners changing their positive view of…
PE IRRs down two quarters Download PitchBook’s Report here. Following a stalwart 2021, global PE fund returns fell swiftly in 2022, according to PitchBook’s Global Fund Performance Report. While Q1 remained positive, Q2 dipped into negative territory at -2.4%, and our preliminary Q3 numbers show another negative reading at -0.6%…. Subscribe to Read MoreAlready a member?
Returns jump across US corporate credit to start the year Total returns on US corporate credit have jumped to start the year, driven by more favorable sentiment across the capital markets, as investors react to a third straight month of declining inflation and the expectation that the Federal Reserve is closer to completing rate hikes….
Benign decline: Volume eases 14% YoY in DLD’s Private Data set KBRA DLD tracked $3.8 billion in new-issue volume last month across sponsored, U.S. borrowers. Managers said new business felt slower than usual for the start of the year, and indeed, the tally in our Private Data set was down 14% from January 2022. The…
Industrials lead private debt deals in North America A month into 2023, industrials are the dominant sector among private debt deals in North America with 10 deals out of 36 deals in total (28%), a three-deal lead over consumer discretionary. Activity in the sector is consistent with previous years, as industrials deal numbers generally occupy…