Public PEGs got much bigger last year Download PitchBook’s Report here. 2021 was bumper year for public PE firms. PitchBook’s latest Analysis of Public US PE Firm Earnings has several interesting breakdowns, but YoY AUM trends stand out. Blackstone, KKR, Apollo, Carlyle and Ares all increased their AUMs, some more than others. KKR led the way,…
Private debt sees continued consolidation among fund managers As private debt continues to grow, so does the size of its largest funds. In Q1 to Q3 of 2021, the top 10 managers in the asset class by AUM accounted for 42% of all capital targeted, while their smaller peers outside of the top 50 attracted…
Europe has maintained its deal discipline Despite some inflation effects being felt, the overall picture is rosy for those operating in the market. A new report from investment banking advisory firm Lincoln International highlights some of the trends from a strong year for deals in Europe in 2021. One area for concern in previous Lincoln…
BDCs post further NAV gains BDC earnings season is underway, with funds that have filed to date posting positive performance overall in 4Q21, topping off a strong year for the asset class. BDC earnings climbed in 2021 against a backdrop of robust portfolio company performance and record origination activity. BDC origination activity was bolstered…
Fewer emerging lenders in 2021 Download PitchBook’s Report here. 2021 marked a decade low for “emerging firm” private debt fundraising, according to PitchBook’s Annual Global Private Debt Report. Only 64 private debt funds were raised last year by emerging firms, down from 145 in 2020. Before 2021’s slowdown, emerging lenders raised at least 100 private debt…
Investors’ target allocations indicate bright fundraising future for private debt Nearly every type of investor increased their target allocations to private debt over the past year, in part due to low real returns from public debt investments. Most investor types, with the exception of family offices and wealth managers, have current allocations far below target….
The lure of the lease As the hunt for yield gathers even more intensity, the triple-net lease strategy is winning support. With the prospect of sustained inflation likely to further erode already diminishing fixed income yields, the hunt for yield and attractive risk-return is becoming even more urgent. Against this backdrop, increasing numbers of investors…
More institutional deals get done without a CSA this month The institutional loan market has mostly shifted to a term SOFR base rate this year. While there are a few deals that have been done at a spread over Libor, these are on the decline. Only 11% of institutional term loans so far in February…
“Too much capital chasing too few deals”? Download PitchBook’s Report here. “Too much capital chasing too few deals” is a common refrain in the direct lending market. Is it true? It doesn’t appear to be, according to PitchBook’s Annual Global Private Debt Report. Globally, the direct lending market has about 2.5 years of dry powder on…
Special situations funds raise more capital through the pandemic North America-focused fundraising for private debt hit new highs during the pandemic, with $105.7bn raised in 2020 and $128.6bn in 2021. Special situations funds, which finance specific events, such as mergers and acquisitions, raised a record $23.4bn of capital for investment in North America in 2020….