2020 buoyed by fourth quarter PitchBook’s latest US PE Breakdown is around the corner. Our numbers suggest a massive jump in Q4 activity, bringing 2020 closer to 2019 numbers than many expected. In all, we’re estimating 5,309 deals were done in 2020 totaling $708.4 billion. Respectively, those totals are -3% and -7% off 2019 numbers….
Private Debt Fundraising Slightly Slows in 2020 Since 2015, more than 200 private debt funds have been closing each year. Even with the slowdown that the COVID-19 pandemic caused in the alternatives assets industry, private debt fund managers were able to maintain this trend and closed 202 funds in 2020…. Subscribe to Read MoreAlready a
The LP view of 2021 Our annual study of investor sentiment finds optimism over future performance and an enthusiasm for distressed debt. Amid all the worry and confusion that has accompanied the global health crisis, it can be difficult to focus on the fundamentals of business – understandably so. But investors in private debt know…
2020 US Syndicated loan volume at 10 year low amid pandemic In a year overshadowed by a global pandemic, social unrest and a prolonged US election cycle, lenders pushed over US$1.5trn of loan volume through the syndicated market, a 27% drop over the same time last year and a 10-year low. Although Covid-19 was the…
Middle market rebound in Q3 PE activity saw a healthy rebound in Q3, which was expected, according to PitchBook’s just-released Q3 Middle Market Report. An estimated $115.6 billion was invested last quarter, a 66% jump over Q2’s disastrous $69.6 billion tally. Volume also reversed course, with 711 transactions in Q3 and a 50% increase over…
Libor floors remain in institutional market, but are lower in 4Q20 As the Libor rate remains at low levels, investors continue to demand Libor floors in the institutional market. The average 3-month Libor rate is at an average of 0.22% so far in 4Q20, this is down from 0.25% in 3Q20 and is roughly 130bp…
Will Venture Debt go up in 2021? Venture debt is a type of debt financing provided to venture capital-backed companies by a specialized financier to fund working capital or capital expenses. Fundraising of this strategy has had a pattern of highs and lows in capital raised over the last 10 years…. Subscribe to Read MoreAlready
A New Year’s wish: More of the same After a tumultuous year, private debt managers are hoping the strategies that have served them well so far will retain LP support. “Sticking to the knitting” is a phrase beloved of private markets fund managers. What it’s meant to convey is that, when chaos is all around…
2021 prediction: 20% of buyouts over 20x A bold prediction coming from our upcoming PE Outlook note: 20% of buyouts will be priced above 20x EBITDA. Our numbers suggest around 18% of them are trading above the 20x mark through late November, though there are caveats galore when looking at 2020 activity. Many of the…
Over half of US CLOs report less than 1% of portfolio assets in default Before COVID-19, 78% of post-crisis US CLOs reported less than 1% of their portfolio in default, 15% reported between 1% and <2% of their principal balance in default, while 7% reported more than 2% in default. By August, only 44% of…