NA private debt deal activity struggles to catch up with 2021 highs Private debt deal activity in North America has slowed in the second half of 2022 so far, with the number of deals dropping to just over 100 in Q3 this year. Since the recent high of $78.8bn in Q2 2021, aggregate deal value…
The UK: room for optimism but concern growing While dealflow remains strong, lenders are cautious as we head towards the end of the year. Figures from Deloitte’s Alternative Lender Deal Tracker show the UK debt market is still the most active private lending space in Europe, accounting for 111 out of the 395 deals on…
Poll: Direct lenders overwhelmingly say they stayed busy in 3Q22 The direct lending market continues to be a popular go-to option at a time when the syndicated loan market has seen lower volumes due to heightened levels of volatility. Refinitiv LPC recently polled US middle market lenders, asking them: were you able to lend as…
Direct lending keeps replenishing Download PitchBook’s Report here. PitchBook’s latest Private Debt Report is now available. Direct lending is “the standout strategy” among private lenders, now accounting for more than a third of all capital raised in the private debt market. The ratio was actually higher last year, 46.5%. Direct lending is joined at the hip…
More APAC investors commit to PD, highest increase in ASEAN Tighter bank lending conditions are leading to increased demand for capital from companies, allowing APAC’s nascent private debt market to expand. APAC-based private debt AUM stands at $78bn as of December 2021 and has grown at an average rate of 29% over the past five…
Europe ‘resilient in times of volatility’ The region is facing an array of headwinds but dealflow held up strongly in the first half of the year. When you consider all the macroeconomic challenges facing Europe, the fact that the private debt market posted double-digit deal growth in the second quarter of this year is a…
Unitranche minimum spread threshold shifts higher While volatility led to a significant increase in pricing in the broadly syndicated institutional loan market early in the year, it took longer to have an effect in the direct lending space. For unitranches, the average blended spread in 2Q22 was flat relative to 1Q22 at 596bp. However, direct…
More add-ons in the MM Download PitchBook’s Report here. The ratio of add-ons in the middle market is increasing, according to PitchBook’s Q2 2022 US PE Middle Market Report. That’s been an evergreen trend for the past decade, but it appeared to go into overdrive in 2022. Add-ons now account for 73% of all middle market…
APAC private debt fundraising steadies after record Q2 After a record 2019, when APAC’s private debt fundraising hit $12.1bn, the following years saw a drop in comparison. However, the ship appears to be steadying, as the $6.7bn raised in 2022 so far matched the $6.7bn raised during the same period a year earlier, thanks to…
Why it’s time to revisit documentation Lenders have had a tough time at the negotiating table in a borrower-friendly market, but things may be changing. With economic clouds gathering, there is a sense that now is as good a time as any for investors/lenders to start flexing their muscles again in deal negotiations. Indeed, some…