Last week in our special series on visibility in direct lending, we touched on the element of risk/reward. This week we examine relative credit losses and liquidity of the asset class. The issue of private credit losses cuts to the heart of transparency. Since middle market borrowers are generally smaller, private, and unrated, and their…
Private Debt Fundraising in Different Regions over H1 2019 Private debt fundraising started 2019 slowly, and in Q2 it has not picked up. Looking regionally, it appears that while prospects are good in North America, in Europe and Asia fundraising momentum has fallen to the mid-point of the year…. Subscribe to Read MoreAlready a member?
Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for Third Quarter 2019
12x the rest of the year? Download PitchBook’s Report here. Two quarters into 2019 and buyout multiples remain above 12x on a median basis, according to PitchBook’s recently released PE Breakdown Report. Quarterly readings from 2015 to early 2016 were in the 9.5x to 10.5x range, with multiples gradually building over time. Though high, investors have…
Source: SPP Capital Partners Contact: Stefan Shaffer stefan@sppcapital.com
Percentage of Loans with F&C Tranche / Pro Forma EBITDA >0.9x Contact: Steven Miller
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com
Distressed managers find favour with investors in H1 2019 The biggest challenge for such shops will be where to find chances to deploy capital should no extended period of topsy-turvy markets ensue. Distressed debt fundraising has come back in a big way in the first half of the year, according to Private Debt Investor’s fundraising…
Share of LBOs levered 7x or more edges higher in 2019 Source: Debtwire Par Lender appetite for LBO loans was strong in 1H19, with leveraged loan issuance backing LBOs amounting to USD 75.7bn. The institutional loan component, the focus of buysiders’ attention, totaled USD 60.8bn. On the other hand, high yield bond volume backing LBOs…
Thanks to consistent repayments since the credit crisis, direct loans have an effective life of less than three years.