Recent PE Funds Have a Head Start As is to be expected, private equity funds of all vintages and geographies see their average distributed-to-paid-in multiples climb over time, as managers successfully liquidate even aging holdings after years of operational enhancements. The rates of increase in DPI multiples by vintage, however, can be split into two…
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
European hybrid bonds continue to underperform Idiosyncratic risk in the European corporate hybrid bond sector has seen new issuance stall and credit spreads rise. European Hybrid bonds have underperformed their senior counterparts over the last year Idiosyncratic risk has been key driver, with Volkswagen and Total seeing spreads widen Markit iBoxx EUR Liquid High Yield…
The question of where we are in the business cycle may ultimately be answered only in hindsight. Similarly what triggers the next cycle will likely different than what set off previous downturns. Subprime mortgages, tech, or sovereign defaults will probably not be culprits, though fallen energy credits could certainly qualify. Given the mature recovery, credit…
Middle market and large cap LBOs totaled thirteen so far this quarter; there were sixty for 2Q 2015. Source: Thomson Reuters LPC
Assets under management (AUM) increased in April for both U.S. CLOs and retail loan funds. CLO AUM edged up to $430 billion, while loan mutual funds & ETFs AUM increased to nearly $112 billion. Over the past year, CLOs and retail loan funds have experienced contrasting fortunes. In that time period, U.S. CLO AUM is…
This week we continue our conversation with Deloitte’s Ned Music and Fenton Burgin. Mr. Music is an SVP in the US firm’s Deloitte Corporate Finance LLC Capital Advisory team while Mr. Burgin heads up Deloitte LLP’s UK Capital Advisory practice. Capital Advisory has 140 debt professionals in 30 countries dedicated to the middle market. Mr….
Larger PE Funds Continue to Realize Gains at Longer Horizons From the one-year mark to the 10-year, the horizon internal rates of return (IRRs) of private equity funds worldwide gradually advance from 8.2% to 13.1%. Breaking down fund performance by size bucket yields further insights, most notably that on a sufficiently long time horizon, funds…
Credit Strategies Hedge Funds Face Testing Times Credit strategies hedge funds saw a trade-off between limited volatility and near-neutral returns through 2015 and the opening quarter of 2016. Quarterly performance through the period saw highs of 2.20% (Q1 2015) and lows of -0.96% (Q3 2015), as credit strategies funds recorded lower volatility than the wider…
