US LBO activity remains healthy, with volume totaling US$19.5bn so far this quarter LBO activity has remained steady despite persistent headwinds in the financial markets this year. Refinitiv LPC has tracked roughly US$19.5bn in completed syndicated and clubbed US LBO volume so far this quarter, after 1Q22 saw US$52.8bn in volume. 1Q22’s level made it the
Choppy fundraising ahead? Download PitchBook’s Report here. Market turmoil continues. The ripple effects will impact private equity deal flow and exits, and it will certainly impact fundraising. Our latest analyst note sees fundraising “tapering as demand outstrips supply.” PEGs have been returning and re-returning to the fundraising trail over the past few years, inundating LPs with
Asian regulations hinder private debt fundraising Small and medium-sized enterprises form the majority of companies in Asia, accounting for 97% of business. They often face difficulties obtaining financing from traditional banks, which indicates a huge opportunity set for private debt....
Loan fund flows total US$25.2bn to date in 2022 In the same week that the Fed raised rates 50bp, the largest increase in 22 years in a move that was widely expected, retail loan funds posted a US$557m inflow, its 7th consecutive week of positive flows but the 3rd week of sub US$1bn inflows. 17
Software chugging along Download PitchBook’s Report here. One sector that never really slowed is software. PE activity reached new heights last year, with almost $170 billion invested across more than 1,000 transactions. Combined value was 78% higher YoY, while deal flow jumped by 49%, according to PitchBook’s Q1 US PE Breakdown Report....
NA consumer discretionary tops PD deals in 2022 The vast majority of deals involving private debt finance in 2022 so far have targeted North America, with 202 out of 289 deals involving North America-based portfolio companies. Globally, 27 deals were in the consumer products segment, of which 18 were in North America....
Larger funds mean larger deals A new average fund size record was set in Q1 2022, as private debt managers become more ambitious at the larger end of the market. We’re in the era of the private debt mega-fund. Last year, according to Private Debt Investor data (see chart), the average fund size breached $1
Unitranches help move senior leverage higher on direct lender middle market technology sector LBO deals The increasing popularity of the unitranche loan structure backing direct lending middle market LBOs in the technology sector drove senior leverage levels higher than those in the broadly syndicated market last year. Tech sector deals have seen persistently high purchase
PE firms are clubbing again Download PitchBook’s Report here. During the buyout boom of 2005-2008, “club” deals were a common sight, especially at the high end. When the music stopped in 2008, many of the biggest portfolio companies were held by three or more PE firms, who had to make “club” decisions about what to do
Special situations fundraising momentum slows Special situations is a niche – but important – segment of the private debt market and attracted interest during the COVID-19 pandemic. Have investors now cooled on the strategy? Early indications from Preqin data suggest that may be the case....