A rise in interest rates, lower pricing and credit quality remaining the same are some of the predictions made by respondents to the inaugural market survey carried out by Proskauer’s private credit group.
Top lending institutions responded to the benchmarking survey with their predictions for the next 12 months. The results, in conjunction with market data Proskauer has collected from over 180 transactions in the last 12 months, provide an insight into market conditions and forecasts for the remainder of the year.
Respondents are also expecting competition to drive prices lower and leverage higher, while most also indicate that the maximum leverage that they will underwrite is 6.00x or greater. Some 87 per cent of respondents remain interested in investing in the healthcare industry, despite the uncertainty in the healthcare sector, while 79 per cent plan to fundraise in the next 12 months.
Steve Boyko, co-head of the private credit group, says: “We wanted to conduct a survey that could be used to supplement the trends we observed in our proprietary data. As a result of the high response rate from senior investment professionals in the industry, we believe that our survey produces meaningful insights into current market trends.”
