How Has COVID-19 Impacted Private Debt in Europe? Private debt fundraising has impacted differently in the markets of Europe than in Asia or North America. While in the last two regions fundraising declined in Q1 2020, Europe-focused private debt fundraising augmented, and Q2 seems to be decreasing…. Subscribe to Read MoreAlready a member? Log in
Distressed debt takes centre stage A recent survey of investors by Oxane Partners found 42 percent said private credit attractiveness overall has decreased for the next 18-24 months while only 31 percent said it has increased, a net negative of 11 percent. But this loss could be distressed debt’s gain as investors show huge interest…
Primary yields in the US institutional loan market tighten in May After spiking in April, primary US institutional yields have tightened in May, but remain at very high levels. The average yield, assuming a three-year term to repayment on first-lien institutional term loans is 8.15% in May, down from 9.45% in April. That month, issuers…
The short-term forecast Download PitchBook’s Report here. PitchBook analysts expect deal flow to drop fairly substantially over the next several quarters. The trajectory is similar to the drop during the 2008 financial crisis but doesn’t reach the depths that it did in 2009. If our forecasts come close to the truth, deal volume will dip to…
Has Asia-Focused Private Debt Been Impacted by COVID-19? The Asian private debt market is still relatively small, and expansion has been slower than in the more developed regions of Europe and North America. The region has yet to reach a ‘critical mass’, so activity remains cyclical. Has there been a significant change amid the pandemic…
Strategic pioneers give fundraising a helping hand Outside of the mainstream, fund managers are seeking to take advantage of the dislocations produced by the global pandemic. In a way, all seems normal. Our latest data on private debt fundraising by strategy (see charts above) are not especially out of kilter with the norm. A slight…
April was down, as expected Download PitchBook’s Report here. An early look at April 2020 deal volume shows the significant decline we’ve all been anticipating. Only 158 transactions were completed last month, less than half of the typical monthly volume we were seeing pre-pandemic. As we’ve noted in the past, some of these deals were announced…
MM Sponsored dealflow pipeline expected to remain anemic through summer Middle market syndicated loan issuance remains extremely thin for sponsor-backed deals so far in 2Q20. Volume has only reached about US$1.6bn so far in 2Q20 with zero opportunistic flow such as refinancings or dividend recaps. Anecdotally, lenders indicate that the M&A pipeline is extremely thin…
Non-Accruals across lower middle market portfolios rise to 7.5% Effects of the coronavirus lifted the average non-accrual rate across lower middle market BDC portfolios by 1.7%, to 7.5% in the first quarter. Out of $5.8 billion of outstanding first- and second-lien term loans, $436 million was on non-accrual across 42 borrowers, up from $331 million…
Fund Managers Response to COVID-19 Although fundraising is slowing in the wake of the economic fallout from COVID-19, most alternatives fund managers appear to be staying the course. From a survey conducted by Preqin to fund managers, three-quarters said that they do not plan to change their investment strategy for any active funds as a…