Chart of the Week: Larger Than Life
The number of leveraged loans for buyouts over $1 billion has grown steadily since the Great Recession.
The number of leveraged loans for buyouts over $1 billion has grown steadily since the Great Recession.
The illiquid non-correlated nature of smaller loans are attractive features amidst today’s market volatility.
Over half of sponsored transactions are displaying greater than 10x purchase price multiples.
To select a private debt manager, investors must perform due diligence on a variety of factors.
Thanks to consistent repayments since the credit crisis, direct loans have an effective life of less than three years.
Cliffwater’s analysis of risk premiums across asset classes shows a broad range of returns above Treasurys.
Losses incurred by direct lenders tend to follow a pattern based on the experience of each manager. Source: Cliffwater LLC
The recent pick-up of senior lending coincides with new private credit providers entering the market.
The share of financings with a covenant requiring a management meeting rose last year.
The share of loans with free and clear grower components climbed to a record high in the three months through May 2019.