Global PE Buyout Multiples and Deal Flow View PitchBook’s 2017 Analyst Note: Where can PE firms find attractive valuations? Here Global buyout activity has gradually surpassed median EBITDA levels following the financial crisis. Creeping up to 10.2x on the eve of the crisis, LBO valuations have oscillated in the 8x-9x range dating back to 2010,…
Italian bank sub paper now worthless We noted last week that investors need to be aware of idiosyncratic risk and not be lulled into complacency by the languid market conditions. Monetary policy surprises were also highlighted as potential events that could disrupt the somnolent summer…. Login to Read More...
Large Corporate LBO Leverage Jumped in 2Q17 to 6.4x Leverage levels on large corporate LBO deals closed in 2Q17 has reached the highest level tracked since 4Q14. Leverage averaged roughly 4.84 times first lien by 6.39 times total debt to EBITDA this quarter for broadly syndicated LBO deals,… Login to Read More...
Digesting Elephants: What Happens Next with SBOs? View PitchBook’s 2017 PE & VC Exits Here Secondary buyouts have been artificially propped up by the inflated volume of crisis-era investments for the past few years. “Like a snake digesting an elephant’s worth of assets,” as Bain & Co. phrased it, PE deals made from 2005 to 2008…
North America Real Estate Debt Closed-end private debt fund servicing the real estate market have grown in prominence in recent years, as investors seek to participate in a sector which offers an attractive risk/return profile, and strong overall performance. The bulk of this… Login to Read More...
Noble Group clings on A year ago this week, the credit markets were digesting the shock of a ‘leave’ vote in the Brexit referendum. What followed was a period of extreme volatility and it seemed that 2017 was set for more of the same…. Login to Read More...
Middle market sponsor-backed issuers are seeing fewer repricings than large corp. issuers Private equity shops have taken advantage of strong liquidity in the loan market to refinance/reprice many of their portfolio companies into longer dated maturities, looser structures and cheaper pricing…. Login to Read More...
Exit multiples have stayed steady at an elevated level View PitchBook’s 2017 PE & VC Exits Here Slowly but surely, exit multiples for secondary buyouts and corporate acquisitions have risen over the past two years, with figures for the former topping off at 9.4x last year. Thus far in 2017, the aggregate figure for all transaction…
Private Debt Funds’ Time on the Road Preqin here compares the time spent on the road by private debt and buyout funds currently in market. This demonstrates that although buyout funds are more likely to experience a quick fundraising process, they are also more likely to remain in market for several years. … Login to Read
Middle market fundraising firing on all cylinders in 2017 Money continues to pour into the middle market in a myriad of ways. For starters, 2017 is going to be the strongest year for middle market CLO formation since the credit crisis. Year to date $7.3 billion in middle market CLOs have priced, not too far…