When junior debt fundraising comes out on top The lack of mid-market mezzanine opportunities has likely caused the size of mezzanine funds to grow faster than senior debt vehicles. Fewer firms are raising a greater portion of all private debt capital, but this stands out to be particularly true in mezzanine debt. Junior loan funds…
Private Real Estate Debt Attracts Investors The private real estate debt market has grown significantly in recent years as fund managers have sought to capitalize on the opportunity provided by banking regulation, and investors have targeted exposure to the stable income and portfolio diversification that debt investments can provide…. Login to Read More...
A closer look at foreign investment There’s a tradeoff between welcoming foreign investment and protecting national security. That’s becoming a more common tradeoff to consider in the private equity world, where foreign investors are keen to get involved in direct investments…. Login to Read More...
Private Debt in Asia Struggles to Gain Ground The Asian private debt market is still relatively small. While the industry has grown rapidly in the more developed markets of North America and Europe, expansion has been slower in Asia, and the region has yet to reach a ‘critical mass’, so activity remains cyclical…. Login to
Why the UK is OK Politicians are still fumbling for an appropriate response to the UK’s Brexit vote, but the drama has not destroyed prospects for private debt funds targeting the country. The UK may have voted to leave the European Union in June 2016 but, in the almost three years since the referendum was…
US leveraged loan volume seeing a higher share of B3 names While the US leveraged loan market is still challenged by lower supply, the share of B3 rated names by Moody’s has started increasing recently. In April, there was US$6.6bn of completed B3 issuer rated volume, the highest monthly total since October’s US$10.6bn…. Login to
MM exits off to a slow start Download PitchBook’s Report here. It’s early still, but middle market exits are off to a historically slow start in 2019. Just $27 billion worth of sales were inked in the first quarter off of 137 exits. On a quarterly basis, both were low marks going back to 2010, when…
After a slow start to the year, MM fundraising showing a pick-up After a record US$97bn in inflows into middle market direct lending in 2018, the fundraising environment is off to a slower start in 2019 with US$14bn tracked year to date. In 1Q19, LPC only tracked about US$9.0bn in inflows following a record $42.4bn…
Private Debt Keeps Performing Well Over the one-, three- and five-year periods to June 2018, mezzanine funds have outperformed all other private debt strategies, generating an annualized return of 11.5% over five years. In contrast, direct lending funds have produced the lowest returns over these timeframes, generating just 4.7% over five years, while distressed debt…
One more sign fewer firms are raising more of the money Fundraising data showed an acceleration of fewer vehicles collecting an outsized amount of capital; the amount raised in the first quarter changed little compared to Q1 2018. If the stratification of asset managers by size signals an asset class that is maturing, then private…