Squeezed in the Middle

It’s ironic. Just as the economy seems to be picking up steam and the Fed is ratcheting up rates to stay ahead of inflation, the prospect of additional tariffs and trade wars risks putting a damper on the whole party.

A recent survey of middle market dealmakers by Antares Capital (and featured by our friends at S&P LCD in their weekly wrap) highlighted these dueling forces. Just under 40% of respondents feel better about the economy than they had in January. But 47% of lenders surveyed expressed worries about what’s to come for the economy.

That view is indeed colored by trade and tariffs. As LCD reported, “more than two-thirds of respondents said they were concerned about trade issues, which could have top-to-bottom implications on supply chains.”...

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Quote of the Week

“Correlations moving around can do a lot more damage than volatility rising.” – Tom Clarke, global macro strategies, William Blair.

Chart of the Week: Freight Forward

M&A loan volume for the current quarter is on par with last quarter’s activity; share of buyouts down from a year ago.

Lead Left Spotlight

Peter Magas

Managing Director

Beecken Petty O'Keefe & Company

"Demographics suggest continued demand for healthcare services and the provider base cannot keep pace."

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Mark Habner

Co-Founder & CEO

BeckWay Group

"Individuals within a company truly make the difference in performance and excellence, not the company itself."

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Rod Rivera & David Baker

Managing Directors

Capstone Headwaters

"Value-based care is definitely the theme of the day."

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Andrew Welch

Managing Director

Revelstoke Capital Partners

"We believe scale matters, particularly in healthcare."

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Bram Smith & Lee Shaiman

Outgoing and Incoming Executive Director

LSTA

"Despite the financial crisis and a sharp pricing drop, loans and CLOs actually performed as promised."

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Features

The Pulse of Private Equity – 6/18/2018

Is PE performance persistent? Download PitchBook’s Report click here. “Past performance does not guarantee future results.” Finance professionals have probably read that boilerplate disclosure so many times they may not even notice it anymore. And while that phrase has arguably reached truism status, there is a residual belief that past performance is relevant to future

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Leveraged Loan Insight & Analysis – 6/18/2018

U.S. buyout activity keeps up the lively pace, boosting LBO issuance Leveraged buyout activity has been keeping up a lively pace this quarter helping to drive LBO loan issuance higher. So far this quarter there has been US$23.9bn in completed LBO issuance, on par with 1Q18’s total of US$24.7bn. This will be the seventh consecutive

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PDI Picks – 6/18/2018

Trending European Senior debt is finding a home in a rapidly maturing private credit market. All eyes have turned to Europe for senior debt fundraising with the bulk of funds investing at the top of the capital structure targeting the continent. Of the $78.63 billion credit managers are seeking for senior funds, some $39.15 billion

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Private Debt Intelligence – 6/18/2018

Private Debt: A Slow Start for Europe Historically, Europe and North America have accounted for the lion’s share of the private debt fundraising market. However, Europe-focused fundraising did experience a slight downtick in levels in the first quarter of 2018, with just four funds reaching a final close and securing an aggregate €1.9bn. By contrast,

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Markit Recap – 6/11/2018

In the political sphere, Europe and North America appear to be going on separate ways since the election of Donald Trump, as was evident in the recent G7 talks. In the credit world, however, they are closely correlated, reflecting the global scope of corporates on both sides of the Atlantic....

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