Behind improved market sentiment, US institutional loan pipeline builds The US institutional loan pipeline improved to the US$34bn area last week, its highest January level in the past two years. Market sentiment has improved sharply from a few months ago, particularly for lower-rated issuers. In the secondary market, the B2/B3 cohort of names closed last
PE hold times keep falling Download PitchBook’s Report here. Now down to 4.9 years, the median holding time of PE assets continues to fall. That’s the first sub-5 year reading since 2011, a timeframe that saw a peak of 6.2 years back in 2014, according to PitchBook’s latest Breakdown Report. Much of the overall downfall—a good
The Asian opportunity for managers More investors say they are looking to deploy capital into the region, and the possibilities go beyond identifying new LPs. Not surprisingly, many alternative asset investors are considering the Asia-Pacific as one of the emerging markets in which they are likely to invest over the next 12 months, according to
Private Debt Fundraising Market More Crowded Than Ever There a currently more private debt funds in market than ever before. The start of 2020 saw a total of 436 private debt funds on the road seeking a record $192bn in combined capital commitments. This marks an increase in both the number of...
2020 prediction – SWFs and pensions will become more sophisticated Download PitchBook’s Report here. Sovereign wealth funds and public pensions financed private equity for years before they began co-investing in deals alongside their GPs. Though the trend is well publicized, the practice is still rare overall. Pension funds co-invest in about 2% of all US deals
Fees are still a sticking point for private equity LPs High fees have become a focus for critics of the industry, and fund managers will need to make their case to the voting public. Almost three-quarters of LPs find private equity fund fees difficult to justify to their colleagues, according to the 2020 edition of
DL Deals Monthly Scorecard: December buyouts swamped volume, lenders closed out 51 transactions Buyouts swamped direct lending activity in December, accounting for 61% of volume, a big leap from the two previous months that saw more action in M&A Add-On business, according to DL Deals. For the quarter, the increase in buyouts pushed LBOs above
Private Debt Fundraising Slows in 2019 More than 200 private debt funds closed in each year from 2015 to 2018. But 2019 fundraising has lagged, and at the end of the year just 152 funds have reached a final close. Collectively, those funds secured $107bn, the lowest annual total since 2015 and a 11% decrease
2019 US Syndicated loan volume down 20% compared to 2018 record high At US$2.1trn 2019 U.S. syndicated loan volume was down 20% compared to the record setting US$2.6trn raised the prior year amid a thinner pipeline of deals, higher market valuations and the long – if tangential – shadows cast by geopolitical and economic unease.
2020 prediction – a dip in fundraising Download PitchBook’s Report here. 2019 fundraising levels hit record territory in the US, passing $300 billion for the first time. Year-end numbers show a decline in the number of fund closings, though, which fell to 202. Despite the capital haul, that’s the fewest US fund closings since 2012. Taken