Debt takes a larger slice of the pie A new survey shows private credit’s solid performance makes it an investor favourite. Private credit is expected to be the fastest-growing part of institutional investor portfolios, according to research from consultancy bfinance....
Europe slows down considerably Download PitchBook’s Report here. European PE activity hit a skid in Q2, as expected. According to PitchBook’s recently released Q2 European PE Breakdown, deal volume plunged to its lowest quarterly totals since Q3 2013. 650 transactions closed in Q2 for €79.8 billion, YoY declines of 31.5% and 18.7%, respectively....
US debtor-in-possession loan volume surpasses US$10bn so far this year Completed US debtor-in-possession (DIP) loan volume is on track to reaching the highest annual level since the Great Financial Crisis, as many companies have struggled during the Covid-19 pandemic. Already this year there has been over US$10bn in completed DIP volume across 23 deals, with
The Private Debt Market Continues to Grow The private debt industry has seen the growth in its AUM accelerate in recent years, and by December 2019 (our latest data available) funds held a total of $854bn in assets under management (AUM). The market is now more than three times bigger than it was ten years
Venture-backed > PE-backed Private equity is losing its oomph as an M&A driver this year. PitchBook’s new North American M&A Report found that PE-backed M&A is now less common than venture-backed M&A, at least by volume. It’s the first switch between the two asset classes since 2009, which isn’t a coincidence. PE exits come to
U.S. Primary yields widen slightly to 7% so far in July After declining in May and June, primary US institutional yields have inched up in July. The average yield, assuming a three-year term to repayment on first-lien institutional term loans is 7.01% so far in July; up from 6.68% in June, but a lot lower
Private Debt Performance Remains Positive Horizon IRRs for the overall private debt asset class remains above 6% for one-, three- and five-year horizon to December 2019, oscillating between 6.1% and 6.5%. Direct lending funds improved over the past quarter, contrasting with the overall private debt asset class....
The long and winding road Fund managers have found it difficult persuading investors to part with commitments during the pandemic, but demand is still strong. It’s not only economies upon which the covid-19 pandemic is having a slowing effect. As our chart above shows, it’s also the speed with which investors are making commitments to
Weighted average bids of US CLO portfolios continue to edge higher The value of loan assets in U.S. CLO portfolios has continued to trend higher over the last three months, clawing back some of the losses that battered markets at the end of March, according to analysis from LPC Collateral. Looking at the distribution of
Carveouts inching up Download PitchBook’s Report here. Carveouts are up slightly as a proportion of US PE activity, according to PitchBook’s latest Breakdown Report. They made up 10% of all deal flow in Q2, which is on the high end of what we’ve seen over the last three years. Carveouts didn’t boom in numbers in Q2