German buyouts set new records As mid-market activity soars, debt funds continue their relentless advance and the banks have revived too. One quick conclusion that can be drawn from the latest version of MidCap Monitor, published by investment bank GCA Altium, is that the German leveraged buyout market is in fine shape. The 102 successfully…
BDC portfolio loan coupons tighten significantly in 2021 The huge growth of fundraising in the direct lending market and the resulting need to put money to work has pressured loan coupons across market segments this year. The robust lender appetite has enabled borrowers to refinance more expensive debt while allowing sponsors to tap the market…
Private debt fundraising: As top-heavy as it’s ever been Download PitchBook’s Report here. Globally, private debt fundraising is on pace for another strong year. According to PitchBook’s latest Private Fund Strategies Report, about $138.0B has been raised this year across 137 new funds. By combined value, that’s in line with recent years, but the number of…
Private debt investors back consumer spending growth Private debt investors have been active deploying capital in consumer discretionary businesses. With 110 transactions recorded in 2021 YTD, consumer businesses accounted for 10% of all private debt investments. Analysis of deal types in the sector shows growth focus of private debt transactions and the symbiotic relationship between…
ESG moves to centre stage But while progress is being made on the investment side, there are question marks over reporting. New research from trade body the Alternative Credit Council in partnership with law firm Allen & Overy reveals that private credit managers are accelerating the integration of environmental, social and governance issues into their…
Mega-funds lead PE fund returns Download PitchBook’s Report here. Global PE funds posted a quarterly record in the first quarter, returning 17.6%, according to PitchBook’s latest Global Funds Performance Report. Very active capital markets are helping boost quarterly return numbers to historical highs. Preliminary Q2 returns show some deceleration, estimated at 8.8%, but still well above…
Equity multiples average an all-time high 7.1x on middle market LBO deals this year US middle market LBO purchase price multiples have continued to move higher this year. Through the first nine months of the year, the average middle market LBO purchase price multiple was 12.1x, an all-time high, and 8% above last year’s previous…
New ways of accessing private debt for hungry LPs Permanent capital is the holy grail for fund managers looking to expand their fundraising potential even further. In the previous edition of PDI Picks, we provided a glimpse of our Global Investor 30 ranking of the largest LPs in private debt and included a table of…
Private debt sees leap in impact funds Private debt has seen a rise in the number of impact funds, defined as funds with the intention of generating a measurable, beneficial environmental or social impact alongside financial returns, being raised over the year, reaching a new high in 2021 with 12 funds either raising or already…
BDC visible loans benchmark shifts higher in 2021 BDC earnings season is underway with 22 funds having released their 3Q21 reports so far through November 3. This cohort of BDCs has seen their NAV per share increase by an average of 5.6% in the first three quarters of 2021. The appreciation in asset valuations this…