iTraxx skew widens amid volatility Rates and equity markets are now embroiled in a tussle that has upset the pervasive complacency evident at the beginning of the year. Has this affected the credit markets? Naturally. The primary credit indices experienced considerable volatility; perhaps not as newsworthy as the VIX, but notable nonetheless…. Login to Read
M&A loan financings comprise 30% of completed U.S. leveraged issuance this quarter The U.S. leveraged loan market continues to chug along at a steady pace. So far this quarter there has been US$110bn in completed leveraged loan issuance. The mix of deals comprises a healthy chunk of M&A. There has been US$33bn in completed leveraged…
How much potential is in the middle market? Quite a bit Download PitchBook’s 2017 Annual US PE Middle Market Report click here. The middle market continues to outpace the broader private equity market. According to PitchBook’s 2017 Annual US PE Middle Market Report, deal volume in the $100M-$1B range last year was about even with…
Private Debt Fundraising Momentum Private debt funds achieved final closures in 2017 faster than in any year since 2008, taking an average of 14 months to reach a final close. This is a sharp drop from 2016, when funds took an average of 19 months to reach a final close – the highest average of…
BDC share prices were engulfed by market wrath earlier this week Register now for LPC’s 6th Annual Middle Market Loans Conference – April 25, 2018 at the NY Marriott Marquis! For those investors that are bullish on BDCs, this week was a prime buying opportunity as the middle market debt managers were engulfed in equity…
Add-ons vary by market Download PitchBook’s 2017 Annual US PE Middle Market Report click here. The buy-and-build model is popular in the PE industry. Investors’ appetite for add-ons stretches back about a decade, but most of the increase has taken place in the middle market, specifically at the lower end. Following the financial crisis, lower-…
Investment Consultant Outlook for 2018 There are currently 547 alternative investment consultants globally and of these, 41% provide private debt advisory services to their clients. In November 2017, Preqin conducted a survey of 36 consultants active in private debt to determine their sentiment with respect to the private debt industry…. Login to Read More...
Thomson Reuters financial unit sale marks the largest LBO financing since 2013 Tuesday’s announcement that Blackstone is buying a 55% stake in Thomson Reuters Financial and Risk business in a deal that values the unit at US$20bn makes it the largest LBO deal since 2013. That year saw buyout deals of US$28bn for HJ Heinz…
Software is eating private equity Download PitchBook’s Report click here. The typical hold time for portfolio companies is 5-7 years. As we’ve discussed with the retail sector and others, a lot can change these days in that amount of time. Investors can get caught flat-footed by rapid developments in consumer behavior, energy prices, new legislation,…
Private Debt Set to See Record Capital Distributions in 2017 Private debt has seen strong performance in recent years, which has driven the elevated levels of capital distributed back to investors. In fact, private debt funds returned 18.4% in the year to June 2017, and 10.9% in the five years to that point. When looking…