Private Debt Intelligence – 11/20/2017

Private Debt Deals Completed in Q3 2017

The private debt industry saw 217 deals recorded in Q3 2017, worth $16.9bn This brings Q1-Q3 2017 total private debt deal activity to 580 deals completed, worth an aggregate $83.2bn. In contrast to Q3, Q2 saw 215 private debt deals, which had an aggregate worth of $45.3n. While Q3 saw a similar number of deals as the previous quarter, recorded capital from deals fell by over $28bn. Previously, the lowest recorded capital from private debt deals over the past five years was in Q1 2017, which saw 148 deals worth $21.0bn. In fact, Q3 recorded the lowest amount of capital from deals since Q1 2010, which saw 85 deals completed, worth $15.0bn.

North America remains the most active region in the private debt industry, representing 66% of all private debt deals tracked in Q3. Europe was the second most active region, and makes up 29% of private debt deal activity. Historically, these two regions account for the largest proportions of the private lending market largely due to their political structures, as well as because of their regulatory environment. Additionally, North America and Europe have seen a slowdown of traditional lending which has benefitted the development of the private debt market.

When broken down by industry, industrials represent the largest proportion of deal activity, and account for a fourth of private debt deals completed in Q3. Information technology and consumer discretionary account for 17% of deals, while healthcare represents 13%. Food and agriculture made up the smallest proportion of deals (5%).