Fear recedes over fund facilities Initial wariness over subscription finance has given way to acceptance – at least when it comes to brand-name GPs. “Leverage is a sensitive topic for LPs,” says Carolina Espinal, managing director at HarbourVest Partners. But while skepticism was rife in the early days of the subscription finance market, when limited…
The spike in growth funds Download PitchBook’s Report here. One of the many consequences of COVID was a shift in strategies among investors. The chart above is from PitchBook’s Quantitative Perspectives: US PE Enters a New Regime. It shows a relative spike in growth funds starting in mid-2021, relative to all fundraising done that year. The…
1H22 Leveraged volume down 31%; HY bonds off 75%, institutional loans down 61% The US leveraged market dramatically slowed in 2Q22, completing just over US$292bn of loan and high yield bond volume to bring totals for the first half of the year to less than US$480bn, down 31% year over year. The lack of macro…
Distressed debt mega funds rising again Fundraising in distressed debt, a major private debt strategy, has been relatively volatile over the past decade. Nevertheless, aggregate capital raised in 2021 rose to $31.7bn, compared with $14.8bn in 2011. The peak of 2020, in which fundraising hit $66.2bn, was boosted by the Oaktree Opportunities Fund XI closing…
A fast-changing asset class Continuing our reflections on how different dynamics are being seen across private markets. In last week’s edition of Lead Left, we took at look a some of the key themes emerging from our Private Funds Leaders’ Survey 2022, which we published in conjunction with MUFG Investor Services. This week, in our…
Jumbo volume in 1H 2022 reaches $30.8 billion to bring total tally to $86.5B Volume in the first half of 2022 for private loans sized at $1 billion or more has reached $30.8 billion, a level that dwarfs the $9.5 billion recorded in the same period last year, according to Direct Lending Deals. On a…
What level will perpetual-life BDCs AUM reach by year-end 2022? Perpetual-life BDCs, though few in number, have accounted for the bulk of growth in BDC assets under management (AUM) this year. AUM in perpetual-life funds amounted to around US$55bn at the end of April, up from US$34bn at the end 2021…. Subscribe to Read MoreAlready
Direct lending funds increasing in size Direct lending has seen strong fundraising momentum over the past decade, with funds of vintage year 2021 raising aggregate capital of $113.2bn, compared to those with vintage year 2011, which raised $8.2bn. With this, the number of direct lending funds greater than $1bn in size has also increased substantially….
On the minds of limited partners Our upcoming Fund Leaders’ Survey provides a glimpse into what investors are thinking about the key issues of the day. So what are limited partners really thinking? Multiple answers to that question may be found in the upcoming July/August issue of Private Debt Investor, where we devote a section…
BDC portfolio company earnings outlook for 2022 weakens The outlook for BDC portfolio company earnings has weakened in recent months, according to the Refinitiv LPC BDC Outlook June Survey. With companies facing higher costs in the current inflationary environment and heightened fears around slowing economic growth, survey respondents say that the biggest challenge facing BDCs…