View Article By
Today’s deal structuring affects private debt’s future Cov-lite, cov-wide or cov-regular, credit managers are making the bed they’ll have to lie in. The private debt deal market is red hot: there is cash aplenty, more lenders than there are deals, egregious EBITDA addbacks – and investors are taking note....View Article
Private Debt Industry in Europe Reaches $200bn in Assets Europe has been a key area of interest for investors in private debt in the past year. Of the private debt investors surveyed by Preqin in June 2018, 47% view Europe as presenting the best opportunities – the largest proportion of any region. Additionally, the numberView Article
Why are SBOs more expensive? Download PitchBook’s Report here. Secondary buyouts have transacted at a premium versus non-SBOs since the financial crisis. That’s somewhat surprising; one might assume that “used” portfolio companies would trade at a discount given the operational improvements that have already been made, leaving less low-hanging fruit for the next sponsor. Not soView Article
Leon Black sounds the alarm Apollo’s Leon Black made a few waves this week, warning that “the credit markets, unlike the equity markets, have gone to bubble status.” He said the amount of covenant-less debt available today is higher than it was in the run-up to the financial crisis. Bloomberg’s Lisa Abramowicz was right toView Article
MM cov-lite issuance of $22B YTD slightly behind 2017’s record high Year to date middle market covenant lite volume has reached US$22bn. This is only about 11.5% behind 2017’s all time record high of US$25.1bn, making 2018 the second highest year on record. Much of 2017’s strong momentum carried over into 2018 with 1H18 issuanceView Article
Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for Fourth Quarter 2018
Beginning in October 2017 The Lead Left published a series of articles on covenant-lite. This report consolidates those articles.
Beginning in March 2017 The Lead Left published a series of articles on private credit and public debt. This report consolidates those articles.