Select Deals in the Market – 11/7/2016
☞ Click for a larger image.
TheLeadLeft
The Pulse of Private Equity – 11/7/2016
PE buyers still rooting for value in lower reaches of US middle market
The proliferation of private equity funds into all reaches of the US middle market has been well documented. Increased PE activity in the lower and core segments of the middle market is easy to see, particularly when assessing the median transaction size, which declined from a high in 2014 to $133.0 million last year and $128.6 million through the end of September. The slides aren’t dramatic, of course, but as can also be seen in the relatively more resilient proportions of PE dealmaking within the lower middle market...
Already a member? Log in here
Stat of the Week: Total Consumer Credit Owned and Securitized
Total Consumer Credit Owned and Securitized
The Art of the Add-On (Third of a Series)
The process of identifying successful add-ons is a complex one. Each sponsor has developed over the years a different style and methodology depending on their investing approach. As we’ve noted, it’s also very sector-specific. Not every portfolio company needs to, or should, have the same acquisition strategy. One partner walked us through two scenarios. “We…
Already a member? Log in here
Loan Stats at a Glance – 11/7/2016
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Chart of the Week: Piling On
Add-on volume for the overall market rebounded sharply during 2Q 2016 from the first quarter, though slowed last quarter.
Private Debt Intelligence – 11/7/2016
Private Debt Dry Powder by Fund Type
The past few years have seen a large amount of investor capital in private debt funds remain unspent by fund managers, with strong fundraising activity resulting in a significant ‘wall of capital’. In 2016 so far, private debt dry powder has climbed to $199bn, up from $191bn at the start of the year, although levels of uncommitted capital have fluctuated across different fund types.
Dry powder held by distressed debt managers has risen by nearly a third (31%) since the end of 2014 and now stands at $63bn, the highest of any fund type...
Already a member? Log in here
Covenant Trends – 10/31/2016
Synergies & Cost Savings EBITDA Addback
Leveraged Loan Insight & Analysis -10/31/2016
U.S. CLOs posted their best month since June 2015 with issuance of $8.4 billion in October, taking year to date issuance to $54.5 billion. In addition to new issuance, much of the energy in October was focused on refinancings and resets in advance of the upcoming risk retention deadline. After the new regulation comes into effect on December 24, compliance with risk retention rules will be required for deals that refinance...
Already a member? Log in here
The Art of the Add-On (Second of a Series)
Last week we began our series on acquisitions by platform companies of private equity sponsors (“add-ons”) by examining the various roles they play in enhancing value of the underlying businesses. This week we take a closer look at how different sponsors view and implement this strategy. For many firms, it starts with management. “For us,”…
Already a member? Log in here