Lender Survey: Compared to the historical average, loan recoveries will be: Many investors have a wish list for rolling back structural deterioration with, not surprising, bringing back covenants with clean historical EBITDA definition meaning capped add-backs and no inclusion of projected results or cost savings at the top of the list. Although a lower spread…
Middle-market vehicles hit new high in proportion of all US PE fundraising View PitchBook’s 1Q 2017 US PE Middle Market Report Here Last week the steady recovery in the number and aggregate value of US private equity first-time middle-market funds was analyzed, yielding the conclusion that in light of the slower pace in the raising…
Private Debt Fund Manager Outlook: H1 2017 A Preqin survey of 73 private debt fund managers conducted in November 2016 finds that private debt fund managers intend to deploy more capital in 2017 than the previous year, despite concerns surrounding an environment of high valuations and stiff competition for investor commitments…. Subscribe to Read MoreAlready
What is the most likely catalyst for derailment? 41% of the audience polled last Thursday during Thomson Reuters LPC’s Fifth Annual Middle Market Loans Conference pointed to competitive pressures leading to structural and yield deterioration as the most likely catalyst for change or derailment in the market. However, one third pointed to geopolitical risk, which…
Healthy fundraising geared toward US middle market continues to set stage for competition View PitchBook’s 1Q 2017 US PE Middle Market Report Here Pegged for some time now as a potentially more fruitful arena for private equity firms looking for respite from high valuations, the US middle market hasn’t seen as much dedicated, new fundraising…
Private Debt Funds in Market by Geography As at the start of Q2 2017, there were 284 private debt funds in market seeking an aggregate $112bn of investor capital. These figures were roughly the same as they were a year previous, when 260 funds were targeting $123bn globally. Europe was the only region which recorded…
It seemed like Europe breathed a collective sigh of relief after the prospect of a far-right presidency in France receded. The centrist Emmanuel Macron secured victory in the first-round of the French presidential election on April 23, beating National Front leader Marine le Pen into second place. The two will now face each other in…
Share institutional term loans yielding less than 5% drops to 53% in 2Q17 from 68% in 1Q17 Primary yields, while still at low levels, have inched up so far in April. The average primary yield assuming a three year term to repayment on first-lien institutional tranches is 5.03% so far in April, up from 4.61%…
PE moves further into IT, software View PitchBook’s 1Q 2017 US PE Breakdown Report Here Thoma Bravo, Vista Equity Partners and Silver Lake used to be the paramount examples of the few notable PE firms making primarily tech and/or software plays. However, overall investment within the IT industry has grown significantly over the past several…
Private Debt Dry Powder by Geographic Focus While fundraising has been strong in recent years, private debt managers are managing to deploy capital at a similar rate to securing commitments from investors. As such, the level of dry powder has remained relatively constant in recent years, but has risen notably since the end of 2012….