Crunch time for the BDC market Current trading is looking bleak for BDCs, but they’ve come through even worse in the past. BDCs are expected to see significant write-downs and defaults on portfolio company loans because revenues collapsed in much of the economy. A decline in the net asset value of BDCs may end up…
The passing opportunity for direct lenders Companies that may have gone to the syndicated finance market are looking closely at more private alternatives. In Europe, a leveraged finance market which had effectively been on hold since the covid-19 outbreak emerged in March has been slowly waking up. But, as it does so, banks are beginning…
The biggest are the biggest for a reason Nothing much is predictable these days, but don’t expect the fundraising pecking order to change anytime soon. “Do what you can, with what you’ve got, where you are.” The inspirational quote comes from an autobiography of Theodore Roosevelt and surely resonates with anyone forced into lockdown as…
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…
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…
Fundraising in the time of coronavirus Private debt funds are finding it tough to raise capital, but this was true before the virus struck. In the face of the coronavirus pandemic and the enormous disruption it has produced in its wake, little surprise that private debt fundraising appears to be in decline…. Subscribe to Read
How LP views of private equity are being shaped by covid-19 Fewer but more open-minded commitments may be among LPs’ responses to the crisis, according to our new survey. The covid-19 outbreak has thrown the pieces of the puzzle in the air and, as yet, we don’t know exactly how those pieces will land. But…
Why it’s now even harder for first timers The lack of in-person meetings as a result of covid-19 is an added hurdle for debut funds, but a deal-by-deal approach could still win support. First-time funds have not had an easy time amid a competitive fundraising environment and the rapid spread of covid-19 will only make…
How does the dry power get invested now? The market is pausing for thought at a time when there’s plenty of capital waiting to find a home. One constant topic of PDI’s conversations with the market over the last few years has been the inevitability that at some point something would trigger a downturn…. Subscribe
Is this the macro event that will drive distressed? With Covid-19 spreading to more countries around the world, the climate for businesses is changing fast. Fund managers at the pure end of the distressed market are only happy when it rains, as the song goes. But up until now, it hasn’t been raining. Given a…