We continue our conversation with Lincoln International’s European office. “US and Europe are competing markets,” Xenia Sarri told us. “The US was increasingly aggressive six years ago, but now terms are more favorable in Europe. There are no baskets around restricted payments. No excess cash flow sweeps, no amortization and tighter flex language. Are there […]
Middle market cov-lite volume reaches highest level since 4Q19 Middle market covenant-lite volume was tracked at US$1.71bn in 2Q21, the highest level since 4Q19’s mark of US$1.75bn. Totals represented a 155% increase over the $670m tracked in 1Q21. The jump comes as the middle market lending arena remains ultra-competitive, characterized by lower pricing, higher leverage…
High number of PD funds in market due to direct lending Both the number of private debt funds in market and the amount of capital targeted continued to rise through H1 2021. As of July 2021, private debt managers are targeting $295bn across 651 funds. Year-on-year growth has more than doubled 2017’s number of funds…
Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index…
Fundraising at a record pace Download PitchBook’s Report here. One of PitchBook’s 2021 predictions was a record year for fundraising. The table was set for a rebound, and we saw how sentiment and momentum were shifting toward the back-half of the year. Our H1 Follow-Up Outlook shows that prediction is on pace to becoming true. We…
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com
Our Chart of the Week, courtesy Preqin, highlights how both US and European fundraising for private debt came into Covid with a head of steam. That momentum slowed in the wake of the pandemic last year. Since then, however, things have picked up. Our content partner, Private Debt Investor, recently published some excellent commentary related…