The institutionalization of M&A Download PitchBook’s Report here. Last week we highlighted the growing convergence of public and private multiples. For investors who dabble in both markets, there’s a baked-in assumption of a private market discount, since money tied up in buyout funds is illiquid, partially justified by cheaper entry prices and higher returns…. Subscribe to
Pedal off the metal Fundraising tumbled in 2018, in part explained by an unwillingness to add to the stockpile of capital dedicated to distress. Rather like Superbowl LIII, private debt fundraising in 2018 was intriguing but unspectacular. Compared with the record-breaking $211 billion collected globally in 2017, a rather more humdrum figure of $135 billion…
Highly levered middle market issuers could struggle if rates continue to rise Throughout most of this credit cycle, the Libor benchmark rate has remained extremely low making it quite easy for issuers to meet interest payments. However over the past year, three-month libor has risen over 100bps to 2.75%. While the Fed has recently tempered…
Public and private valuations are converging Download PitchBook’s Report here. Middle-market PE multiples barely budged last year. We didn’t expect them to, and we don’t expect them to come down much in the near-term either, barring some significant macro development.2018 marked the sixth consecutive year with double-digit purchase price multiples,… Subscribe to Read MoreAlready a member?
Real estate debt fundraising is a real downer The strategy had a strong run for several years, but that spurt could be over. Real estate debt seemed to be enjoying its moment in the sun – the strategy has risen annually since 2014, and in 2017, it shot up by almost $13 billion. But it…
Will We Continue to See Fundraising Success in the Private Debt Market? Private debt funds that held a final close in 2018 took just 14 months to close. This represents the third consecutive year in which fundraising has sped up: private debt funds closed in 2016 spent 19 months in market; in 2017, vehicles took…
Unitranche volume reached $7.5B in 4Q18 and $27B in 2018 LPC tracked US$7.5bn in unitranche facilities closed in 4Q18, down slightly from the US$8.9bn tracked in 3Q18, but still quite robust. For the 2018 year, LPC tracked US$27bn in unitranche facilities closed, 13% higher than 2017’s levels. As many direct lenders continued to amass scale…
Another record year for the middle market Download PitchBook’s Report here. The US middle market had quite the year. Both volume and total value easily set records by year, and the quarterly totals were even more impressive. All four quarters saw more than $100 billion invested—not only the first time that’s happened, but those are the…
Underwriting’s influence on track record GPs’ documentation practices play an outsized role in private credit, and LPs should know whether they’re doing it well. Limited partners put an almost unanimous emphasis on a potential general partner’s track record, with 97.6 percent of respondents in our annual PDI Perspectives 2019 investor survey saying it forms a…
Asia-Focused Private Debt Fundraising Falters 2018 proved to be another strong year for private debt fundraising, with the year seeing 163 funds holding a final close and securing an aggregate $110bn in capital. North America continued to represent the largest portion of the industry: 91 North America-focused vehicles raised a total of $68bn…. Subscribe to