Under-allocations laid bare Limited partners have struggled to invest as much in private credit as they would like, as our new study shows. Having been through a period where the denominator effect and slower distributions combined to hamper their allocation efforts, limited partners now find themselves substantially under-allocated to private credit…. Subscribe to Read MoreAlready
Private debt fundraising recovers toward trend Read more in Private Debt Q2 2024: Preqin Quarterly Update Private debt funds raised $50.4bn in the second quarter of 2024, boosted by a more settled economic outlook. This was a welcome return to the recent average fundraising, after a weak start to the year…. Subscribe to Read MoreAlready
Middle Market Survey – Were you able to lend as much as you wanted to in 2Q24? Even though middle market loan volume increased by 27% to US$67.2bn in 2Q24, many middle market lenders found sufficient opportunities hard to come by in the most recent quarter, according to LSEG LPC’s 3Q24 Middle Market Outlook Survey….
Comparing Business Development Companies and Middle Market Collateralized Loan Obligations (Part 1) Click here to learn more. While the expansion in private credit has attracted widespread media attention in recent years, direct lending has been around for several decades and remains the largest segment of private credit. Two of the most prominent financing vehicles in…
Continuation-fund-related PE exit count Download PitchBook’s Report here. Looking ahead, the forces driving the recent acceleration in continuation funds remain in place. Traditional M&A and IPO exits recovered in H1 2024 but only modestly so. They remain well below historical averages relative to AUM and the 23,300 companies accumulated by PE funds in North America and…
Fewer PMR ‘CCC’s Reach the ‘B’ Category Click here to learn more. Once in the ‘CCC’ category, fewer issuers in the PMR portfolio ascend to the ‘B’ category than public peers. The AAT% of ‘CCC’ category issuers that reach the ‘B’ category is just 11% in the PMR portfolio compared to 18% for Fitch’s public…
PE exit/investment ratio Download PitchBook’s Report here. GPs need to address the oncoming maturity wall of their existing investments, and many are turning to continuation funds to extend exit timelines or secure liquidity without forced selling…. Subscribe to Read MoreAlready a member? Log in here...
Premium for MM direct lending loan yields over large corporate credits averaged 265bp in 2Q24 Pricing tightened across all market segments in 2Q23 as demand for assets outpaced supply. This enabled borrowers to obtain more attractive pricing on new credits and refinance existing debt…. Subscribe to Read MoreAlready a member? Log in here...
Fundraising revival on hold There were some signs of improvement in the second quarter, but raising new private debt capital was still a struggle in the first six months of 2024. The first half of 2024 did not offer much consolation to those awaiting clear signs of a private debt fundraising revival. Private Debt Investor’s…
1H24 New-issue CLO volume sets new record for first six months at over US$99.5bn Over US$99.5bn of new US CLO issuance has been completed through the end of June 2024, an increase of over 77% compared to the same time last year and a 23% gain compared to the prior record half year total of…