Flight to quality continues on in the US leveraged loan market Looking at year-to-date average secondary bids along with loan volume highlights the flight to quality seen in the US loan market over the past few months. Corporates with a rating of single-B or lower peaked in 2019 monthly volume with US$24bn back in May….
Distributions – timing is everything Download PitchBook’s Report here. With illiquid asset classes like PE, it’s hard but worthwhile to try to figure out how quickly LP dollars go in and out of funds. Our latest analyst note on cash flow management focuses on distribution numbers, with interesting results for market observers and actionable data for…
Multi-regional funds hold their own in chase for capital In 2019, so far, capital pools investing in more than one global region have raised more than in 2018. Multi-regional funds – those investing across more than one geographic area – have made a comeback this year, or at least risen back in line to prior…
Private Debt Performance Slows as AUM Grows Returns for the private debt asset class as a whole have slowed over the past year, with distressed debt and direct lending funds contributing most to this slump. Over the one-, three- and five-year horizons, mezzanine funds have performed the strongest of the debt strategies, posting an annualized…
Recent investor challenged single-B deals have yet to gain traction since breaking in the US secondary market As bifurcation among credits continues, a number of recently launched deals for single-B names received significant investor pushback during syndication. Not surprisingly perhaps, none of these loans have been bid above their break price in the secondary market….
Public and private Download PitchBook’s Report here. Recent GP stake deals are giving us a growing sample size of private PE firm valuations. We already had a small set for publicly traded PE firms, and we’ve heard ad nauseum that the public markets don’t fully understand how to value firms like Blackstone or Apollo. Much of…
Another sign that the big are only getting bigger The baseline for being in the top-10 fundraises of the year increased from 2018 to 2019, signaling the growing dominance of a few firms. The overall capital collected by the top-10 fund closes this year has eclipsed the total raised by last year’s 10 largest fundraises,…
Private Debt Funds in Market Q3 2019 The fundraising market for private debt remains crowded at the start of Q4, with 417 private debt funds seeking an aggregate $177bn in capital. Although slightly down from the start of Q3, both figures remain very high compared with historical total. But these figures could lead to a…
Add-ons keep surging Download PitchBook’s Report here. Add-ons now account for 68% of all US PE buyouts. If that pace holds, 2019 will notch another high-mark for the add-on/LBO ratio, which has been trending up for the past decade. That’s according to PitchBook’s 3Q Breakdown Report, just released this week. Two crosswinds have helped boost that…
1-3Q19 Sponsored loan volume off 48%; LBO volume at 3-year low Less than US$90bn in syndicated loan volume backing PE sponsor activity was completed in the US market in 3Q19, the third lowest quarterly total in the last three years, and a 30% drop year over year. In turn, less than US$265bn in sponsored loan…