Direct Lending vs. Distressed Debt Over time, direct lending has slowly taken over from distressed debt as private debt’s largest strategy. At the end of 2016, direct lending had AUM of $156bn compared to distressed debt’s $185bn. But since then, direct lending has grown steadily to $452bn while distressed debt had grown more slowly, hitting…
The year our manager ranking doubled in size As we moved from 50 fundraisers to 100 in our annual ranking, investor appetite for private debt has soared to new record levels. This year, we published the PDI 100 ranking of private debt’s top fundraisers over a five-year period. Having started with the PDI 30, we…
Is infrastructure poised for a resurgence? Download PitchBook’s Report here. Infrastructure is much in the news these days, given the massive spending bill currently being legislated in the US government, as well as even more earmarks being discussed worldwide by other nations. The potential implications of such significant investment in infrastructure, particularly in digital and energy,…
Including direct lending loans, 2021 US LBO volume is at an all-time high When including direct lending deals, US LBO loan volume has reached an all-time high this year. Year-to-date through November 22, there has been US$194bn in syndicated US LBO volume and US$34bn of middle market direct lending LBO volume (direct lending data as…
North American private debt AUM growth vs. Europe Up until the Global Financial Crisis, the majority of Europe-focused financing came from banks. After 2008, borrowers were forced to turn to other sources of debt finance as banks tightened the purse strings. Since then, the private debt industry in Europe has grown a lot, with AUM…
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…