Leverage peaks in the middle market across capital structures in 1H17 With market conditions extremely heated, leverage levels have peaked across most capital structures in the middle market in 1H17. The “all senior” capital structure hit a new peak at 3.83 times in 1H17, up from 3.79 times last year and from 3.41 times back…
Contact: Steven Miller smiller@covenantreview
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 comprises of more…
PE is consistent, even against Russell View PitchBook’s Research Note Here Is private equity performance consistent? Managers will tell you yes – according to marketing materials, nearly every manager boasts of top quartile performance. Squishy numbers and contestable metrics have clouded the industry for years, and investors apparently fall for them every cycle. … Subscribe to
To get a better handle on the total universe of middle market loans, let’s define what we mean by the middle market. Should we include, for example, both non-sponsored as well as sponsored loan volume? Thomson Reuters LPC estimates there’s been an average of $100 billion in annual non-sponsored activity since 2000. But these financings…
This week we chat with Ted Goldthorpe, head of credit for BC Partners. Ted launched the BC Partners Credit business in 2017 and oversees a team of experienced credit professionals. As a managing partner of the firm, Ted is also a member of the Investment committee of the private equity business. Previously Ted was president…
Annual issuance of middle market sponsored loans has averaged just over $100 billion, though 2017 is running at a $140 billion pace.
Private Debt Dry Powder Holds Steady As at the end of June 2017, private debt managers held more than $205bn in dry powder, up slightly from the $196bn recorded at the end of 2016. This relatively small increase demonstrates another way in which the private debt market is becoming increasingly distinct from the private equity…