Exit volume decline continues Download PitchBook’s Report here. Third quarter exit volume hit its lowest point since Q2 2020, according to the Q3 US PE Breakdown. So did exit value, for that matter. All told, an estimated $293 billion has been sold off this year, which actually stacks up well against prior years. 2019, a healthy…
US LBO purchase price multiples dropped in large corporate market last quarter As concerns about the potential for a recession continue to cause heightened volatility across the market, more focus is put on enterprise valuations. Last quarter, LBO purchase price multiples in the large corporate syndicated market declined to 10.8x, the lowest since 4Q18. Of…
Private debt funds continue to grow Private debt is increasingly attractive to LPs amid global inflation and rising interest rates. Year to date, the average size of private debt funds closed has increased to a record $1.3bn, almost double that of 2020’s $704mn. Aggregate capital raised by private debt funds experienced a 14% dip this…
Fundraising weathers the storm – for now Our latest data shows capital raised by private debt fund managers continues at a consistent level, despite multiple headwinds. It’s now an uncertain time for private debt fundraising as investors confront the volatility of the economic and geopolitical climate as well as, in many cases, overallocations to private…
10% of industries account for 60% of add-ons Download PitchBook’s Report here. An upcoming project unearthed an interesting trend around add-ons: Over 60% of them are done by 10% of the industry codes tracked by PitchBook. Sectors like insurance and healthcare clinics are severely fragmented, which gives PE investors an opportunity to put the buy-and-build model…
US sponsored middle market direct lending activity stayed robust in 3Q22 Last quarter, there was US$35.1bn of US sponsored middle market direct lending volume, 17% higher than 2Q22’s levels and the most since 4Q21’s record US$55bn level. The direct lending market remained quite busy in 3Q22, in contrast to the broadly syndicated market which slowed down…
Managers could face 16% increase in cash-flow challenged issuers next year Portfolio managers are potentially facing a 16% rise in the number of borrowers that cannot generate enough cash flow to meet interest expenses by the end of 2023, based on an analysis by KBRA DLD’s new parent, Kroll Bond Rating Agency (KBRA). The analysis…
European direct lending boom sees American dominance decrease A record-breaking number of direct lending funds have closed in Europe this year, a sign of the increasingly global reach of private debt. North America remains the biggest private debt market but has seen its proportion of funds closed globally drop to 53%, down from a high…
Investors gravitate to Asia-Pacific In the face of the global headwinds, this is one part of the world that appears to be looking relatively attractive. Since beginning to gather momentum in the aftermath of the global financial crisis, fundraising for Asia-Pacific private debt reached a record high last year of $11 billion. Although this is…
U.S. Primary yields soared in 3Q22 In 3Q22, first-lien institutional yields skyrocketed to levels not seen since the credit crisis. The average primary yield, assuming a 3-year term to repayment on first-lien institutional term loan Bs was 9.45% in 3Q22, up over 300bp from 2Q22 levels. While spreads widened, they only accounted for 19bp of…