Select Deals in the Market – 3/27/2017
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TheLeadLeft
League of Their Own
At the start of 2017 spring training, the NY Yankees had a undrafted prospect on their roster named Ruth. Not the Babe, of course, though the coincidence has been noted. “It’s kind of cool to have the same last name,” said Eric Ruth, a 26-year-old pitcher. Interestingly other than the Bambino there have been no…
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Lead Left Interview – Kevin Griffin (Part 2)
This week we continue our conversation with Kevin Griffin, CEO and Chief Investment Officer of MGG Investment Group LP. MGG is a private, specialty finance group focused on direct lending. Kevin is a veteran private lending investor and former managing director and Credit Committee member at Highbridge Principal Strategies. Second of two parts – View part…
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Chart of the Week: Capital Source
So far this year fundraising for middle market firms is matching the pace we saw in 2016.
The Pulse of Private Equity – 3/27/2017
On a long enough horizon, returns for PE funds of all sizes converge
By and large, the macroeconomic environment remains the most significant factor to bear in mind when assessing long-term private equity fund performance. Given the impact of the financial crisis, it makes sense that no matter the size of the fund in question, at the longest time horizon—10 years—internal rates of return (IRRs) have by and large converged. Following the typical J-curve of fund performance, at that point in the conventional fund lifecycle most assets that end up contributing to the majority of a fund’s return have already been sold...
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Private Debt Intelligence – 3/27/2017
First-Time Fund Managers
The environment for first-time private debt managers has begun to stabilise in recent years as the industry continues to mature. Fundraising has been consistently robust, performance has been strong, and investors are increasingly open to the prospect of committing to managers without a proven track record.
First-time private debt managers secured a record total in 2013 ($9.6bn), and in the years 2013-14 firms have raised over $23bn as the market continues to develop....
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Loan Stats at a Glance – 3/27/2017
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Leveraged Loan Insight & Analysis – 3/20/2017
Leverage on institutional middle market deals climbs on new money deals in 1Q17
Interest in middle market loans from large corporate investors tends to wax and wane based on market conditions, but currently investors are super receptive to these smaller credits given a supply demand imbalance in the leveraged loan market. As a result, leverage levels on institutional middle market deals are rising in 2017 across most deal purposes. Leveage on dividend recap deals peaked in 2013 at 5.3 times and was in decline through 2016 down to 4.3...
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Covenant Trends – Average Total Leverage for M&A-Related Loans
Average Total Leverage for M&A-Related Loans
Debtwire Middle-Market – 3/20/2017
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…
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