Unitranche minimum spread threshold shifts higher While volatility led to a significant increase in pricing in the broadly syndicated institutional loan market early in the year, it took longer to have an effect in the direct lending space. For unitranches, the average blended spread in 2Q22 was flat relative to 1Q22 at 596bp. However, direct…
More add-ons in the MM Download PitchBook’s Report here. The ratio of add-ons in the middle market is increasing, according to PitchBook’s Q2 2022 US PE Middle Market Report. That’s been an evergreen trend for the past decade, but it appeared to go into overdrive in 2022. Add-ons now account for 73% of all middle market…
APAC private debt fundraising steadies after record Q2 After a record 2019, when APAC’s private debt fundraising hit $12.1bn, the following years saw a drop in comparison. However, the ship appears to be steadying, as the $6.7bn raised in 2022 so far matched the $6.7bn raised during the same period a year earlier, thanks to…
Why it’s time to revisit documentation Lenders have had a tough time at the negotiating table in a borrower-friendly market, but things may be changing. With economic clouds gathering, there is a sense that now is as good a time as any for investors/lenders to start flexing their muscles again in deal negotiations. Indeed, some…
Dealmaking steady, fundraising slows Download PitchBook’s Report here. PitchBook’s Q2 2022 US PE Middle Market Report is now available. All things considered, dealmaking was stout in H1. Over 1,600 transactions were finished, with $228.2 billion invested in the process. Both figures are strong relative to prior years, except 2021. At this pace, the middle market is…
BDC share price-to-book value remains above recent lows BDC share price-to-book values have bounced around recently, impacted by shifting investor sentiment. The average share price-to-book value is at 0.91x as of September 9, down from 0.95x in mid-August but is still up from a recent low of 0.80x in June. There are wide variations in…
Ups and downs in the US Some of the key talking points from our recent roundtable Amid rising interest rates and an inflationary environment, US private debt professionals are able to look on the bright side. Participants in a roundtable, forming part of our recent US Report, pointed out that rising rates translate to an…
Private debt cements place in European investor portfolios Actual allocations to private debt have moved closer to their targets in European investor portfolios since Q2 2015, reducing the gap from 3.6% of AUM to just 1.7% in 2022, with actual allocations standing at 3.3% against a target of 5.0%…. Login to Read More...
US$7.6bn of new issue US CLOs priced in August US CLO new issue volume was US$7.6bn in August, down from US$11.5bn in July and down from US$19.2bn priced in August last year. Although the pace of new CLO formation slowed, total volume so far in 2022 is US$92.57bn, just 18% behind issuance over the same…
More investors see opportunities in distressed debt Global inflation, rising interest rates, and slowing growth are driving investor interest for distressed debt. After opportunities anticipated during the COVID-19 pandemic failed to materialise, investor interest in distressed debt dropped to just 26% of investors selecting the strategy as presenting some of the best opportunities in 2021….