Looking at the Private Debt Funds in Market At the start of Q4 2018, there are 396 private debt funds in market seeking an aggregate $175bn in capital. This represents an increase of seven funds in market than at the start of Q3, but the funds currently in market are seeking $5.0bn less in aggregate…
After strong 2Q, 3Q18 ABL loan volume down 45%; 1-3Q18 totals 2% off y-o-y Consistent with behavior observed across the leveraged cash flow market, the asset based loan market saw a marked drop off in issuance in 3Q18, completing less than US$17bn in deals via retail syndication. These results represented a 45% decline in volume…
Are SBOs a drag on fund performance? Download PitchBook’s Report here. Secondary buyouts are one of the most critiqued aspects of the private equity industry. But SBOs aren’t going anywhere, and they represent one of the largest deal sourcing opportunities in today’s market. Still, it’s worthwhile to investigate the wisdom of buying “used” portfolio companies, since…
When geography is the same Multi-regional and North American funds have taken the top two spots again for regions with most credit funds raised. Investors are going global this year, as funds with multi-regional geographic mandates raised have raised the most money in 2018 at $31.3 billion, or 35.36 percent of the $88.57 billion total,…
Direct Lending Sees Banner Q3 Although private debt fundraising activity slowed in Q3 2018, with the quarter recording 31 funds holding a final close and securing a total of $24bn in capital, direct lending had a banner quarter. In Q3, four distressed debt vehicles raised $2.4bn, eight mezzanine funds raised $1.5bn and 15 direct lending…
Syndicated middle market sponsored volume tanked in 3Q18 The summer of 2018 was not noteworthy for those middle market lenders that focus on sponsored deals. Syndicated issuance took a nose dive to just US$13.7bn in 3Q18, down 43% and 30% from 2Q18 and 3Q17 levels respectively. “We are only able to get crumbs in terms…
Credit market veterans are all too aware that the determination of CDS credit events is far from straightforward. This can be seen as a weakness of the product, but it is difficult to avoid given the irregularity of bond contracts and the smorgasbord of insolvency laws across different jurisduictions. The case of Astaldi is a…
Foreign investment in the spotlight Download PitchBook’s Report here. Foreign PE investment in US-based companies has been strong going back to 2014. And consistent. Since 2014, non-US investors were involved in about 12% of all US-based PE investments per year. The US private equity market is easily the most developed market available, and while the European…
The importance of explaining Brexit Brexit makes a majority of LPs nervous about European credit markets, according to a PDI survey. Investors may have had almost two-and-a-half years to process and prepare for the UK’s departure from the EU, but that doesn’t mean they aren’t still wary of the end result, data from a PDI…
Private Debt Fundraising Slows in Q3 Q2 2018 was the third-largest fundraising quarter ever seen for private debt, as 36 funds secured a combined $42bn. This pace of fundraising has not been maintained in Q3, with 31 funds closed in the quarter raising a total of $24bn. However, funds closed in the first three quarters…