The decline of global distress? Investors are flocking to North America, particularly for distressed debt; the geography made up an outsized portion of the total capital raised for the strategy in the first quarter. The fundraising pendulum may be swinging back to North America, as we wrote several weeks ago, and that shift is particularly…
North America Dominates the Distressed Debt Market The distressed debt market in North America remains the largest globally: 75% of all distressed debt funds raised since 2015 have been primarily focused on the region, amounting to an aggregate $73bn in capital secured. Following similar patterns seen in the overall private debt universe,… Login to Read
Middle market update Download PitchBook’s 1Q 2018 US PE Middle Market Report click here. Somewhat predictably, middle-market PE activity got off to a healthy start this year. About $54 billion was invested in Q1, down from a very strong Q4 2017 (almost $87 billion). First quarter numbers often decline from fourth quarter finales as investors…
Two market views Managers may be putting resources and strategies behind a bearish view of the market. Senior debt and distressed debt fundraising totals were neck and neck in the first quarter, according to PDI fundraising data. Private debt funds closed on $37.1 billion in the first quarter, and those targeting the top of the…
U.S. middle market loan pipeline reaches a new height The latest U.S. middle market pipeline figure hit US$6.1bn marking the highest level it has reached since Thomson Reuters LPC started tracking mid-market pipeline stats last year. Lenders in the middle market have said they have kept busy and the pipeline number backs this up. Helping…
Direct Lending Drives Dry Powder Growth The private debt industry has seen relatively small increases in dry powder (capital waiting to be deployed) in recent years. After spiking by 23% across 2015, annual rises in 2016 and 2017 were just 3% and 7% respectively, with a further 3% rise to the end of April 2018….
Construction Delays Download PitchBook’s report click here. Last week we highlighted our recent buy-and-build research, which found, among other things, that PE hold periods are significantly impacted by add-on deals. On average, platforms with add-on acquisitions take about one year longer to exit versus bare-bones platforms. That, in turn, has helped pushed out PE holding…
North America: Centre of the fundraising world again Vehicles investing around the world raised more money, but North America is ascendant. Private debt is homing back to North America, potentially bringing an even greater influx of capital to the birthplace of the world’s largest private debt market. North America-centric vehicles were seeking $84.42 billion at…
Unitranche volume dropped meaningfully in 1Q18 Thomson Reuters LPC’s newest unitranche league table provides insight into a very private, opaque market. After peaking at a robust $8.2B in 4Q17, unitranche volume fell off a dramatic 63% in 1Q18. What drove the fall off? Sponsors typically gravitate to the unitranche for ease of execution in M&A…
Private Debt Funds in Market: An Overview In Q1 2018, direct lending vehicles – a strategy that typically dominates private debt fundraising – accounted for roughly just 36% of funds closed and a similar proportion of aggregate capital raised. This proved to be a decline in proportions from 2017, when the strategy made up 47%…