BDC leverage on the rise, one tool to combat falling Libor After peaking in December 2018 at over 2.8%, 3-month Libor has since fallen to 1.9% and BDCs are reporting lower weighted average yields in 3Q19 as a result. Following this steep decline, BDCs are taking advantage of their flexibility to increase leverage under the…
PE’s tech infatuation Download PitchBook’s Report here. Tech-focused dry powder has almost doubled since 2016. The latest returns data available is through March of this year, when it totaled $93.1 billion across North America and Europe. That marked a 93% increase since 2016’s cumulative $48.2 billion, according to PitchBook’s latest analyst note on tech funds. The…
Women in Private Debt The number of women that are working in alternatives has increased compared with two years ago. At present, women represent 19.7% of employees in the alternatives industry, where as in 2017, there proportion was 18.8%. However, the rise was unequally shared across the asset classes…. Subscribe to Read MoreAlready a member?
Manufacturing exits are way down We covered China-driven M&A last week, noting that activity has taken a nosedive this year. Chinese acquirers aren’t buying many American companies at the moment, thanks in part to the broader trade war. According to a newly released report from PitchBook and RSM, however, PE is having a rough time…
Infrastructure Debt Reaches Momentum Debt providers in more specific sectors have started to take the place of traditional lenders, as for example in the infrastructure industry. Banks are no longer the main source, and investors are moving towards funds to gain access to the capital structure. Infrastructure debt fundraising has had peaks and troughs over…
Average US second-lien secondary bids at lowest levels since 2016 US second-lien loans have traded down considerably in the secondary market over the past few months. The last round of risk-off behavior by secondary market loan players sent second-lien bids as low as the 87.01 level on October 18th, over a five-point decline from the…
Total leverage on large corporate US LBO loans remains high in 4Q19, but senior leverage declines At a time when investors have been pushing back on pricing and structure on riskier loans, total leverage on US LBO deals remains high. So far this quarter the average total debt to EBITDA level for large corporate LBO…
China-driven M&A isn’t happening this year Download PitchBook’s Report here. North American M&A activity involving Chinese buyers has fallen off a cliff this year. That’s not a complete surprise, but it’s not often you see such swift drop-offs without something alarming going on. According to PitchBook’s just released North American M&A Report, China-driven M&A is on…
Private Debt First-Time Funds in 2019 2019 has been a slow fundraising year for private debt – so far this year just 118 funds have been closed, raising an aggregate capital of $81bn. Fund managers are finding difficult to attract investors and the private debt market remains crowded – there are currently 427 funds seeking…
Distressed debt fundraising figures no longer distressing Despite subpar returns from many such funds, the strategy continues to attract LP dollars. Distressed debt has continued its strong fundraising, with a total of $39.44 billion, or 35 percent, of the $112.69 billion that private credit funds have raised through the first three quarters of the year,…