Asian credit fundraising is a drag A dip in H1 2019 private debt fundraising numbers doesn’t mean the year’s total will finish less than prior years, as the second half of the year is typically stronger than the first. Capital raising in the Asia-Pacific region has lagged in the first half of the year, pulling…
Usually good but seldom great Download PitchBook’s Report here. PE mega-funds (of at least $5 billion) have tended to outperform smaller funds over the past 20 years. That shouldn’t come as a surprise, as mega-funds are only raised by firms that have outperformed over time. At least for private equity, the biggest firms are almost by…
As Libor declines, Libor floors begin to trickle back As interest rates continue to decline, Libor floors are on investors’ minds once again. As of September 24, the 3-month Libor rate was 2.11%, 69bp below its 2018- year-end level. So far in 3Q19, the average Libor rate is 2.20%, down from 2.51% in 2Q19. If…
Private Debt Investors’ Preferences Based on the Preqin’s Investor Update report, private debt investors would have changed their preferences on how and where the best opportunities are presented in the asset class in the next 12 months. Direct lending remains the most sought-after strategy among private debt investors, with almost half (49%) believing the strategy…
A drop in fund closings portends more capital in fewer hands Yet another data point is emerging to showcase how fewer managers are raising an outsized amount of the capital LPs are allocating to the asset class. One of the most prominent trends in private credit today has been that of consolidation. It’s often used…
Middle market update Download PitchBook’s Report here. Middle market PE activity was strong through the first half of the year, according to PitchBook’s newly calculated Middle Market Report. Both deal value and overall volume are on pace to match or exceed last year’s numbers, both of which were records. The back half of the year has…
Private Debt Investors Challenges in the Next 12 Months Preqin’s latest survey finds that private debt investors remain committed to the asset class, and their overall perception of the industry is positive. Performance has satisfied most investors across the asset class – 88% of them said their investment portfolios had met or exceeded their expectations…
North America ascendant in rat race for capital Many smaller private debt funds may be targeting the continent, but that is at odds with the trend toward more capital in the hands of fewer managers. North America may be rising in private credit fundraising – funds targeting the continent are seeking $116.6 billion. Funds investing…
Sustainability-linked loan volume dominates Green-ESG pipeline Year to date, over US$83bn in global green and ESG linked loan volume has been announced, almost two times year ago levels. Of this total, over 80% or nearly US$67bn is in the form of sustainability or ESG linked loans. Amid global interdepence and heightened awareness of environmental risks…
Primary leveraged yields decline slightly in 3Q19 Primary yields have tightened slightly across rating levels so far in 3Q19. The main driver behind the decline in yields are falling Libor rates. At its current level of 2.13%, the 3-month Libor rate has dropped 19bp from 2.32% at the end of 2Q19. For single B issuers,…