Pricing widens significantly for borrowing base E&P revolvers in 2020 Lending to the oil and gas upstream sector at US$17.3bn is down 78% so far this year from the total logged in 2019. With most of the lending to this sector coming from banks through reserve-based revolvers, many issuers have seen the availability tighten under…
A comeback for first-timers? Now that we’re in December, PitchBook’s annual PE Outlook is around the corner and we’re wading back into prediction mode for the year ahead. One trend we’re keeping a close eye on is first-time fundraising, which, to say the least, hit a snag in 2020. Through late November, 24 first-time funds…
Investors Plans for Their Allocation to Private Debt by 2025 In August 2020, Preqin ran a survey among investors to know their investment plans towards 2025. Of the private debt investors surveyed, 58% intend to increase allocations to the asset class by 2025, 14% of them plan to increase significantly their allocations…. Subscribe to Read
Breaking the covenant Two recent surveys have shed light on the issue of covenant breaches, and how managers are responding to them. With the number of covenants in deals having declined markedly in recent years, there has been some doubt as to whether even a sharp downturn would be accompanied by a significant rise in…
PitchBook’s new PE manager framework Download PitchBook’s Report here. PitchBook has developed a new framework to help analyze GP investing styles. Using the Herfindahl-Hirschman Index (HHI)—a metric that measures concentration—we can assign GPs a style score using their past investments as guideposts…. Subscribe to Read MoreAlready a member? Log in here...
Political headlines and investor pressure provide impetus for accelerated ESG discussions US President-elect Biden announced 10 executive actions that he will take on the first day of his presidency in January in an effort to combat climate change. This undertaking will run afoul of the Trump administration’s recent announcement that it will accept sale lease…
Fund Manager Views on the Importance of Debt Lenders in the Next Five Years Private debt firms have stepped into a gap left by banks after the Global Financial Crisis and are focused on lower-risk credits. More than 30% of fund managers surveyed by Preqin for Future of Alternatives 2025 believe banks will be less…
The pain is yet to come Plenty of capital has been raised in anticipation of a distressed opportunity that may take a while to materialise. Distressed debt has been a major focus for investors in recent years, as can be seen from our chart above. Although fundraising this year has been dealt a setback by…
LBO leverage multiples stay aggressive in 4Q20 After remaining extremely light the past two quarters, LBO activity has picked up, as private equity sponsors are putting more money to work. Through the end of last week, there was US$16.5bn in completed US LBO volume, 19% higher than year-ago levels…. Subscribe to Read MoreAlready a member?
The Future of Private Debt Private debt will continue the expansion of the past decade over the next five years. The asset class is expected to be the second fastest-growing asset classes, with AUM increasing at a CRGS of 11.4% over the next five years…. Subscribe to Read MoreAlready a member? Log in here...