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…
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…
Middle market LBO direct lending surges to new heights It was a record setting quarter for middle market LBO direct lending in 3Q21, with volume surging to US$16.3bn, nearly double the 2Q21 level and 50% above the prior record set in 4Q20. On a year-to-date basis, the US$33.9bn of middle market direct lending LBO volume…
Wholesale is the top sector for non-sponsored MM volume this year US syndicated middle market non-sponsored volume totaled US$82bn in 1Q-3Q21, an over 80% increase year-over-year. Leading the way was the wholesale sector with US$9.5bn in volume, 102% higher than 1-3Q20’s level. Refinancing activity has been the big driver of wholesale issuance this year,…
Middle market non-sponsored syndicated M&A jumped to US$4.4bn in 3Q21 The non-sponsored middle market added another strong quarter to the books. While issuance was slightly down from 2Q21, it was a very busy summer with total volume of US$30.3bn in 3Q21. This was the highest level for a third quarter since 2014. Moreover, new money…
1-3Q21 leveraged issuance sets new record at US$1.3Tr U.S. bank arrangers completed over US$250bn of leveraged loan issuance during the quarter, the strongest 3Q results since 2017 as liquidity and a resurgence of sponsor activity buoyed the market. At almost US$935bn, leveraged loan issuance for the first nine months of the year was just shy…
2021 Sponsored leveraged loan issuance is US$493.4bn, up 120% YoY Near the end of the 3Q21, sponsored leveraged loan issuance for the year is US$493.4bn, broken out between US$122.9bn of LBO volume and US$171.6bn of non-LBO volume. Issuance is up 120% over the same time period in 2020, and up 52% from FY2020 but still…
BDC newly originated second lien exposure climbs in 2Q21 BDC’s increased their second lien exposure to 12.1% of new originations in 2Q21, up from the 7.5% tracked in 1Q21. In comparison, first lien assets were relatively flat at 71.6% of originations, while equity positions slipped to 10%. At the fund level, second lien originations as a…
Unitranches continue to grow in size and scale The size and depth of the direct lending market has grown dramatically in recent years, with mega unitranches increasing in frequency. These larger deals have helped private lenders take market share from the broadly syndicated market and highlighted their growing scale. Back in 2019, there were 13…
BDC asset valuations post gains in 2021 BDC’s have benefited from rising asset valuations in recent months, with both loan and equity holdings posting gains. During 2Q21 (the most recent quarter for which data is available), the weighted average mark on BDC debt holdings climbed to 97.71% from 97.18% in the prior quarter and is…