Private equity bandwagon rolls on, but for how much longer? Fundraising for the asset class was strong in the first three months of 2020 but continuing to defy the effects of covid-19 seems unlikely. As we have noted in this column over the last couple of weeks, private debt fundraising provides a neat reflection of…
Not a good time to raise your first fund Download PitchBook’s Report here. As expected, Q1 fundraising totals were soft, according to PitchBook’s PE Breakdown Report. Just 46 funds were closed totaling $45 billion, and much of that was cinched up in January or February. For context, last year’s figures were 249 funds totaling $315 billion,…
1Q20 MM non-sponsored syndicated loan issuance mirrored 1Q19’s dire levels At US$16bn, 1Q20 non-sponsored issuance was down 25% from 4Q19 and was on par with 1Q19, which was the slowest 1Q since 1Q10. After a slow start in January, issuance picked up in February and was flat in March. According to bankers that focus on…
Price points emerge in 10% to 11% range for jumbo direct lending loans Two jumbo direct lending deals surfaced this week— Alnylam Pharmaceuticals and Airbnb —as the first comps to guide new issue underwriting since the Covid-19 pandemic shut credit markets a month ago. Alnylam obtained a $750 million 1L term loan at L+700, while…
Private Debt Fundraising Falls in Q1 2020 The past quarter has been a challenging one, with the emergence of the COVID-19 pandemic impacting in all markets across the globe. Fundraising in private debt slumped substantially over the first quarter of 2020…. Login to Read More...
The hidden attraction of distress They may not be raking in fresh capital right now, but distressed debt managers have plenty of firepower to take advantage of current conditions. In last week’s Lead Left column, we noted that the proportion of fundraising by strategy in the first three months of this year was more or…
New money lending for MM sponsored deals drops for third quarter New money lending in the syndicated loan market backing middle market sponsored deals fell for the third consecutive quarter in 1Q20. Issuance only reached US$7.6bn, down 15% from 4Q19 levels and down 13% year-over-year. New deal momentum was off to a slow start in…
Exits are already down Download PitchBook’s Report here. Exit activity is bound for a tough year, as preliminary Q1 numbers confirm. Historically, first quarter exit totals are typically on the low end anyway; it’s common to see a lull coming off of fourth quarter sprints. Q1 2020 was slow even by that forgiving standard, down 37.3%…
Monthly LBO lending decelerates, yet 1Q20 finishes strong; Outlook bleak LBOs decelerated in March, to 47% of monthly U.S. direct lending volume, according to Direct Lending Deals. The drop was from 63% in February, the biggest month for LBO volume since DLD started tracking transactions in mid-September last year…. Login to Read More...
The impact of COVID-19 on capital calls, distributions, and net cash flows A Preqin-FRG forecasting model shows that capital calls will surge in 2021 as the global economy rebounds. Focused on 2017-2019 vintage private capital funds, the model suggests that, as a result of COVID-19, and assuming the global economy undergoes a significant but brief…