Yields of first/second-lien structures continue to tighten The average yield has widened to 5.46% so far in 3Q17 from 4.96% in 2Q17. One of the reasons behind widening yields is that while refinancings continue to lead activity, the share of M&A credits has increased to 40% of the institutional tranches priced so far this quarter….
Private Debt Investors Look to Mezzanine Funds As part of its Q2 review of the private debt asset class, Preqin evaluated the strategy preferences of the almost 2,800 investors currently active in the industry. It found that investors were targeting fund types at very different rates compared to 12 months ago,… Login to Read More...
Middle Market Activity – 2Q Update To get the full report on Friday, please visit PitchBook’s dedicated Reports page, linked here. The US middle market continues to be a hotbed of PE activity. PitchBook’s 2Q 2017 Middle Market Report, to be released this Friday, shows another strong quarter, particularly for the upper middle market. 147…
Leverage peaks in the middle market across capital structures in 1H17 With market conditions extremely heated, leverage levels have peaked across most capital structures in the middle market in 1H17. The “all senior” capital structure hit a new peak at 3.83 times in 1H17, up from 3.79 times last year and from 3.41 times back…
PE is consistent, even against Russell View PitchBook’s Research Note Here Is private equity performance consistent? Managers will tell you yes – according to marketing materials, nearly every manager boasts of top quartile performance. Squishy numbers and contestable metrics have clouded the industry for years, and investors apparently fall for them every cycle. … Login to
Private Debt Dry Powder Holds Steady As at the end of June 2017, private debt managers held more than $205bn in dry powder, up slightly from the $196bn recorded at the end of 2016. This relatively small increase demonstrates another way in which the private debt market is becoming increasingly distinct from the private equity…
Senior Financials dips below 50bps Few would question the supportive role Mario Draghi has played over the last six years. Under his presidency, the ECB quickly reversed the ill-advised rate hikes in 2011 and subsequently loosened policy – the refinancing rate has been at or close to zero since 2014…. Login to Read More...
Direct Lending Drives Private Debt Fundraising Market Following the record private debt fundraising seen in Q4 2016, during which 51 funds reached a final close, the number of funds in market seeking investment stood at 293 at that start of 2017. Further robust fundraising in Q1 saw this number fall slightly to 283 at the…
Primary leveraged yields widen in July Average yields have increased across the board so far in July, more so for lower rated issuers. The average yield, assuming a three-year term to repayment on first-lien institutional term loans is 5.79% for B-rated issuers so far in 3Q17…. Login to Read More...
PE is consolidating, but why now? View PitchBook’s 2Q 2017 US PE Breakdown Report Here It wasn’t by much, but the US private equity field shrank last year for the first time in over a decade. By year-end, 4,248 PE firms still had their lights on, a 1.3% decline from year-end 2015. Industry observers have been…