PE firms are no longer clubbing Download PitchBook’s Report here. Club deals are something of a sticky issue in the private equity world. PE firms themselves don’t mind them—the risk is spread around—nor do lenders mind them, who also presume less risk with more reputable investors involved. Dry powders levels have skyrocketed, and club deals allow…
Are the good times over? Download PitchBook’s Report here. Private equity’s calling card, from its early days in the 80s through the mid-2000s, has been its ability to beat the market. The asset class pretty handily beat stocks in bull and bear markets alike. Until 2006, LPs in PE funds had at least a 50/50 shot…
US institutional market flex activity has favored issuers so far this month September deals in the institutional loan market have so far been well received by investors. The Flex Factor has tracked 6 flexed deals so far this month with 5 of them being in favor of issuers. This has allowed for an issuer friendly…
More debt funds in market, more questions for investors A large number of vehicles are seeking capital, and fundraising has been strong – but that isn’t a guarantee the boom times will continue. The number of private credit funds in market has been on a steady upward trend, according to PDI data, reflecting the enduring…
Private Debt Goes Global As the alternatives assets industry continues to grow, Preqin is launching an initiative examining the future of alternatives. In conjunction with key industry participants, Preqin takes a five-year look into the future to see where the private debt market will be, what changes fund managers are planning for and how investors…
It’s the 10th anniversary of Lehman’s collapse and we are being inundated with retrospectives and predictions of what will cause the next crisis. Many are pointing towards emerging markets as a likely catalyst, a logical conjecture given the tightening in monetary policy that is underway in the US…. Login to Read More...
Primary yields have widened across the board in 3Q18 The average first-lien institutional term loan yield, assuming a three-year term to repayment is 6.41% so far this quarter, up from 5.77% in 2Q18. One of the main drivers behind increasing yields is the shift in the deal mix. So far in 3Q18, 58% of the…
Mezzanine debt is subordinate no more After a dip in mezzanine fundraising in 2017, credit managers are hoping limited partner demand for the strategy is strong in 2018 with almost 200 funds in market. Senior debt and distressed debt have been the favoured investment choices for limited partners recently, but those strategies may be fading…
GP stakes investing—a new trend, or market timing? Download PitchBook’s Report here. Last week we discussed the rising trend of GP stake sales, which are now officially in record territory in terms of volume. For now, GP stake transactions are highly concentrated in large, top-performing firms. That makes sense—buying a stake in a GP hinges on…
Asia Private Debt Deal Activity Falters While the private debt industry has seen rapid growth in North America and Europe, the industry in Asia has faltered, and private debt deal activity in the region has been mercurial. In 2013, there were 21 deals made in the region, but just 14 the year after. 2015 saw…