Mega deals on upward trend in 2021 The number of mega private debt deals (transaction of $1bn+) had been steadily decreasing since the 48 mega deals that were completed in 2017, but H1 2021 has seen an uptick in activity. Last year, the average deal size stood at $85m and 2020 saw 31 deals with…
Debt finds a foothold in the Middle East The region may be at a nascent stage, but private debt firms are seeing signs for optimism. As a relatively new asset class, private debt remains heavily undeveloped outside of North America and Europe. But some are tipping the Middle East and North Africa to be one…
A handful of larger BDCs failed to cover dividend in 1Q21 Larger BDCs, including Owl Rock and Ares Capital Corp, saw lower net investment income levels for 1Q21, raising concerns over dividend coverage. BDCs generally use NII per share as a measure of whether their earnings can continue to support the declared dividend…. Subscribe to
Long-dated fund market is growing Download PitchBook’s Report here. Long-dated funds are growing in popularity. A new analyst note from PitchBook takes a closer look at the growing market, generally defined as funds built to last for 15 years or more. It’s a relatively new phenomenon that started less than a decade ago, but has since…
Average fund size in private debt increasing in 2021 The average fund size in private debt has increased by almost $200m between 2020 and 2021 so far. In 2020, 244 funds raised aggregate capital of $160bn, resulting in an average fund size of $743m…. Subscribe to Read MoreAlready a member? Log in here...
The distressed opportunity mounts up Leveraged loan defaults have been accelerating, with companies having come under strain during the pandemic. Considering there has been a lot of talk about the delaying of the distressed opportunity as a result of companies being propped up by government support schemes, the figures in the chart above – showing…
Global ESG-linked institutional loan volume sets steady pace in 2021 In a testament to the broadening reach of Sustainability linked lending, the global loan market has been tapped with over US$22bn of ESG-linked institutional loan volume via 21 issues so far this year, up from a small handful during all of 2020. In fact, after…
UK recovery also underway Download PitchBook’s Report here. Deal flow is on the upswing in the UK and Ireland, mirroring similar trends in North America. PitchBook’s UK & Ireland Private Capital Breakdown estimates a dramatic increase in activity in Q1, surging to more than 800 transactions worth a combined £57.9 billion. Those would mark YoY increases…
Short term returns from private debt turn negative Pandemic support from governments and financial banks helped public equity markets to recover faster and more significantly than expected at the beginning of 2020. This dampened demand for private capital, with returns from private debt facing serious downward pressure over the past year…. Subscribe to Read MoreAlready
US syndicated middle market activity picks up the pace in 2Q21 At over US$26bn through May 19, US syndicated middle market volume is just US$3bn shy of 1Q21’s full quarter level. The big difference maker has been sponsored middle market volume, which totals US$10.6bn in completed volume this quarter, already besting 1Q21’s US$9.8bn level. LBO activity…