Covenant Trends – 1/9/2017
Percentage of Loans that Cleared the Market with Uncapped Synergies and Cost Savings EBITDA Addback
Percentage of Loans that Cleared the Market with Uncapped Synergies and Cost Savings EBITDA Addback
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Source: SPP Capital Partners Contact: Stefan Shaffer stefan@sppcapital.com
Review of Current Market Conditions/ Analysis of Capital Markets Metrics Including Covenants, Pricing, and Leverage/ Review of Credit Quality/ Outlook for First Quarter 2017
This week we chat with David Petrucco, Ed Cerny, and Mark Gudis – founding partners of Backcast Partners Management. Backcast is a recently formed venture that focuses on providing direct debt and equity capital to middle market companies across industries. The Lead Left: Gentlemen, congratulations on your new gig. What’s your thesis for Backcast? David…
First-time US PE funds make slight comeback in 2016, but still a low portion of total fundraising
First-time private equity funds in the US amassed just shy of $7.5 billion in 2016, across 26 pools of capital. Although both figures were distinct increases from 2015 - which logged 17 first-time PE funds and $4.6 billion raised - as a proportion of total US PE fundraising, first-time fundraising activity still remains at a considerable low relative to earlier in the past decade...
Along with the sense that mid-cap lenders can now more than hold their own against the largest investment banks in terms of deal size has come a predictable question: With all the lending capacity that’s now available in the middle market, isn’t there too much cash chasing too few deals? A long-time middle market practitioner…
Reported loan activity for sponsor-related syndications rose modestly last year over 2015; private “club” volume expected to be higher.
Private Debt: 2016 Fundraising Update
In 2016, the private debt industry saw a cool-off in fundraising following the banner year in 2015 when almost $100bn was raised. The year was also characterised by a concentration of capital among the larger, more experienced managers while the fundraising marketplace grew increasingly congested as investor appetite for private debt increases.
Overall, 119 funds closed globally raising a combined $74bn, with Preqin expecting these figures to rise by up to a further 10% as more information becomes available...