Private markets get the nod over the long term Investors are confident in the future of private markets, but fund managers have shown combining public and private market investment through flexible mandates can work well. Our recently published LP Perspectives 2024 study asked investors to compare prospects for public and private markets over the short,…
Daily Analytic: Share of portfolios marked below 80% varies widely across BDCs *Based on universe of BDCs that have reported 4Q23 earnings as of 2/13/24 Looking at the universe of 24 BDCs that have published their 4Q23 results as of February 20, we see that credit quality statistics have been relatively stable, with notable differences…
Fitch’s Private Middle Market Portfolio, Rating Activity Upgrades/downgrades in Fitch’s PMM portfolio are generally skewed toward downgrades, as issuer ratings can be constrained on the upside based on limited scale. Downgrades outpaced upgrades in 2023 as pressure from higher interest rates affected the FCF and financial flexibility of issuers in lower rating categories…. Login to
Investors bullish on returns Private debt’s recent outperformance of private equity has bolstered faith in its ability to beat performance benchmarks. Another boost was given to believers in a private debt ‘golden age’ last week, with a report from Bloomberg suggesting private debt fund returns beat those for private equity for two quarters in a…
BDC portfolio marks edge higher in most recent quarter* *Based on universe of BDCs that have reported 4Q23 earnings as of 2/13/24 BDC earnings season is in its early stages, with the vast majority of funds still yet to file. However, taking a look at the 16 BDCs that have published their 4Q23 results as…
GPs target APAC’s emerging private debt market APAC’s nascent private debt market is witnessing significant growth, with the amount of capital targeted by direct lending funds rising to $11.7bn from 45 APAC-focused vehicles at the end of 2023, up from $7.3bn by 40 funds at the start of the year, according to Preqin data…. Login
ESG’s return impact downgraded Investors overall appear to have less faith in ESG’s transformative characteristics in the long term, especially those based in the US. After a period of heightened focus on environmental, social and governance issues, LPs have begun to recalibrate their ESG strategies amid escalating political pushback against such initiatives, particularly in the…
Fitch’s Privately Monitored Middle Market Portfolio Overview, 4Q23 In the charts above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers. Interest coverage (EBITDA/interest) is estimated to have declined to 1.6x in 2023…
Fitch’s Privately Monitored Middle Market Portfolio Overview, 4Q23 In the charts above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers. Fitch estimates median EBITDA leverage of 6.0x for 2023 and expects the…
US$188bn or 53% of current ABL outstanding commitments are to mature between 2024 and 2026 US asset based loan lenders supported over US$149bn of issuance in 2023, the second highest annual total on record and over 20% of total leveraged loan volume for the year. The numbers provided an incomplete view of the 2023 ABL…