It’s not all about institutions All the talk is around retail investment as fund managers reach out to this potentially huge investor base. Retail investors have been beating at the door of the alternative investment industry and it appears the door is now being thrown open, as private debt managers increasingly fall over themselves to…
BDC visible loans benchmark edges lower year-to-date Valuations of actively marked BDC loans have edged marginally lower so far in 2022, continuing the trend seen in 4Q21. This follows a sharp appreciation in valuations during the 1-3Q21 time-period as companies bounced back from COVID hit 2020. The Refinitiv LPC BDC Visible Loans Benchmark (comprised of…
Private debt dealflow in Canada dries up during COVID Momentum in Canada’s private debt market has all but disappeared over the past two years. The number of investments fell from 64 in 2020 to 40 in 2021. Deal value (US$) has slumped from a recent high of $10.8bn in 2019 to $4.1bn in 2020 and…
The secondaries puzzle There are signs of growth in the debt secondaries market, but investors appear less then enthusiastic about new commitments. Nearly all the indicators seem to be going one way: increased appetite for private credit secondaries. In this context, the record $1.4 billion fundraising for Coller Capital’s Credit Opportunities I fund last week…
New LBO loan assets increase as a proportion of total PE buyout activity Private equity sponsors actively tapped the loan market in 2021 to back over US$196bn in buyout activity, the second highest total on record and just behind 2007’s historic totals north of US$200bn. More significantly, over US$126bn or 64% of total issuance represented…
Quarterly IRRs returning to earth Download PitchBook’s Report here. PE performance bounced back strongly following the pandemic, but that momentum appears to be slowing. PitchBook’s just-released Global Fund Performance Report estimates a 3.4% quarterly IRR return for Q3 2021, where the data is preliminary. If that holds as we process more data, Q3 2021 will be…
Private debt’s expansion in Asia-Pacific Growth of Asia’s private debt industry has accelerated in recent years, as the corporate debt market shifts from a conservatively priced, bank-dominated market to a more diversified market. Total private debt AUM focused on the Asia-Pacific region jumped by 28.9% since the start of 2020… Subscribe to Read MoreAlready a
What’s the real story on Asia-Pacific? Our fundraising data for 2021 shows impressive growth on a global basis, but not so much in a region that many claim to have strong interest in. Investor interest in Asia-Pacific is clear and undeniable. That at least seems the obvious conclusion from our LP Perspectives study, which unveiled…
Volatility primes more records for jumbo unitranche loans Jittery markets are priming new records for jumbo unitranche financing. At least a few mandates are in the works that exceed Galway Insurance’s $3.4 billion record last year. Expect jumbos to emerge in support of buyouts, particularly in the software, insurance and healthcare sectors. About half of…
Direct lending drives sponsored middle market issuance to new record Direct lending drove sponsored middle market loan issuance to new heights in 4Q21 and full-year 2021, as sponsors tapped the market at a blistering pace to fund LBOs and add-on acquisitions. Direct lending activity spiked to US$131bn in 2021, almost doubling 2020’s volume and topping…