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Insight

Fundraising 2023: The big squeeze

Private equity remains the most popular asset class for investors in our survey but – facing pressure from the denominator effect and lower distributions – their fund commitments this year will be hotly contested.

Debt restructuring wave unlikely to drown sponsors

Loan defaults in 2023 are not predicted to match previous recessions, but a disproportionate amount will come from private equity-owned companies. Cov-lite structures should give them an upper hand in negotiations… Corporate loan defaults are slowly ticking up and are expected to rise to around 5% in the US and

Larger GPs to test limits of NAV-based lending

Fund financing – which includes subscription lines of credit and NAV-based loans – is set to grow even as capital markets slow. A measured approach is advised… In a slower credit market, there is one form of debt financing that tends to accelerate among private equity funds.  Fund finance –

Mega-trend status drives credit fundraising

Large pension fund investors have increased their allocations to private credit in memory of how the asset class performed post-global financial crisis.  Last year, private credit assets under management exceeded $1 trillion for the first time. Over the next five years that figure is expected to more than double.  On

With banks hung on LBOs, direct lenders control the floor

The carnage in the syndicated bank market looks set to continue and the near-term liquidity of direct lenders is being squeezed. Private equity sponsors are looking for other levers to pull on their buyout financing… There is a problem in the bank market.  The leveraged buyouts, or LBOs, which have

Wall St

Private credit is the new mega-trend for LPs

Target allocations to private credit are rising as investors remember how the asset class has performed in previous recessions, but – as in private equity – fundraising is being increasingly concentrated among a smaller number of credit fund managers.

From fundraising to setting up shop

The first priority for most newly launched funds is typically in the front office. In the back-office, new technology and outsourcing capabilities are providing comfort to them… Though fundraising may be the greatest challenge facing a new or first-time fund manager, it is often back and middle-office considerations that make

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