The Rise of Asian Private Debt A growing middle class in Asia has inflated demand for private debt. This swelling middle class has in turn created growth in the SME market, which has led to robust fundraising. Aggregate capital raised for Asia-focused private debt funds has more than doubled from $3.5bn in 2016 to $8.4bn…
Average EBITDA Adjustment Cap for Synergies & Cost Savings (Sponsored vs. Non-Sponsored) Contact: Steven Miller
Coronavirus and private equity Our 2020 PE predictions did not include a potentially global pandemic, which continues to roil the markets. It’s impossible to know where things will go from here—at least as panics go, this brings flashbacks of 2008 but feels fundamentally different. For private equity, the only playbook to consult is 2008-2011, since…
Is this the macro event that will drive distressed? With Covid-19 spreading to more countries around the world, the climate for businesses is changing fast. Fund managers at the pure end of the distressed market are only happy when it rains, as the song goes. But up until now, it hasn’t been raining. Given a…
Contact: Marina Lukatsky marina.lukatsky@spglobal.com
February new issues soften; March is a guessing game February’s tally of direct lending loans softened to 57, from 73 in January, according to Direct Lending Deals. The decreased flow was mainly due to slower-than-expected M&A — all deals were baked before coronavirus fears torpedoed markets last week. Add-on M&A activity declined to 28% from…
As deals get pulled from the market, US institutional loan pipeline sinks under US$14bn Behind a weakening primary loan market impacted by fears of the spread of coronavirus, the US institutional loan pipeline sank to US$13.7bn this week, the lowest level since the first week of the year. This week’s level is a far cry…
Synergies & Cost Savings EBITDA Addbacks Contact: Steven Miller
We turn to #PrivateCreditMyth #7: “Recoveries will be worse than 2009.” This idea comes from the prevalence of record high borrower leverage and cov-lite structures. If performance deteriorates, lenders have no triggers until a payment default. By then, the business could be worth much less than what the sponsor paid for it. And possibly less […]
