The Lead Left

 Loan fund flows total US$25.2bn to date in 2022 In the same week that the Fed raised rates 50bp, the largest increase in 22 years in a move that was widely expected, retail loan funds posted a US$557m inflow, its 7th consecutive week of positive flows but the 3rd week of sub US$1bn inflows. 17

Software chugging along Download PitchBook’s Report here. One sector that never really slowed is software. PE activity reached new heights last year, with almost $170 billion invested across more than 1,000 transactions. Combined value was 78% higher YoY, while deal flow jumped by 49%, according to PitchBook’s Q1 US PE Breakdown Report....

NA consumer discretionary tops PD deals in 2022 The vast majority of deals involving private debt finance in 2022 so far have targeted North America, with 202 out of 289 deals involving North America-based portfolio companies. Globally, 27 deals were in the consumer products segment, of which 18 were in North America....

Larger funds mean larger deals A new average fund size record was set in Q1 2022, as private debt managers become more ambitious at the larger end of the market. We’re in the era of the private debt mega-fund. Last year, according to Private Debt Investor data (see chart), the average fund size breached $1

Unitranches help move senior leverage higher on direct lender middle market technology sector LBO deals The increasing popularity of the unitranche loan structure backing direct lending middle market LBOs in the technology sector drove senior leverage levels higher than those in the broadly syndicated market last year.  Tech sector deals have seen persistently high purchase