The middle market isn’t cheap Download PitchBook’s Report click here. Middle market activity has never been as strong as it is now. What used to be a space to find bargains has turned into just another frenzied market, one among many. The median valuation-to-EBITDA multiple for all middle-market M&A transactions is up yet again this…
PE-backed IPOs: A hairy 2017 It’s no secret that PE sellers have preferred outright sales over IPOs recently. There are big advantages to staying private, and many of the best-performing assets on sale since 2016 have been bought outright by financial or corporate buyers. Why test the temperamental public markets when acquisitions can bring in…
Primary leveraged yields tighten slightly so far in 4Q17 Yields have declined slightly in 4Q17 despite an increase in the Libor component. The average yield, assuming a three-year term to repayment is at 5.07% so far in 4Q17; slightly below the 5.16% recorded in 3Q17. Holding up the yields is the increase in the 3-month…
Private Debt Deals Completed in Q3 2017 The private debt industry saw 217 deals recorded in Q3 2017, worth $16.9bn This brings Q1-Q3 2017 total private debt deal activity to 580 deals completed, worth an aggregate $83.2bn. In contrast to Q3, Q2 saw 215 private debt deals, which had an aggregate worth of $45.3n. While…
Primary leveraged yields are almost flat in 4Q17 Average primary yields on first-lien institutional term loans have been relatively flat so far in 4Q17. At 5.11%, the average yield assuming a three-year term to repayment on first-lien institutional term loans is just 5bp below 3Q17 levels. However, when looking at the components, yields have been…
The middle market keeps growing Download PitchBook’s Report click here. Middle-market PE activity continued unabated in 3Q. $233 billion has been invested in the MM across 1,652 deals this year, according to our recently released 3Q 2017 Middle Market Report, and the fourth quarter should help push 2017 figures past last year’s, with at least…
Direct Lending Sees Record Fundraising Private debt fund managers have experienced increased fundraising success, and the direct lending industry has especially benefitted from high levels of fundraising activity in recent years. Direct lending has already seen record fundraising levels in 2017, and aggregate capital raised in the year has already surpassed the capital raised in…
Investors have increasingly warmed to riskier issuers since 2016 Since the second half of 2016, investors have increasingly gotten more comfortable with riskier names. According to the Flex Factor, which aggregates price and structural flex activity on institutional loans, B3 rated issuers have seen more issuer friendly changes to their loans now compared to a…
US-Canada PE activity rising, despite politics Download PitchBook’s Report click here. Cross-border private equity activity remains high in Canada, despite trade-related fears at the onset of the incoming Trump administration. According to our latest Canada Breakdown report, available to download here, PE activity involving US investors is on a quick pace in 2017. The 163…
US-Focused Mezzanine Funds After a record year for US-focused mezzanine fundraising in 2016, 2017 has seen a significant slowdown. In fact, 2016 saw 31 funds secure $28bn in capital, surpassing the previous record levels seen in 2008 when 23 funds closed on $24bn. Following the Global Financial Crisis, 2009 saw a record low in fundraising…