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PDF | Research | Week of Oct 21 2024

Quote of the Week

“Broadly speaking, the market is entirely priced for a soft landing.”

– Mike Scott, head of global high yield, Man Group. 

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2024 Private Debt Survey


Institutional investors, RIAs, and financial advisors: We want to hear from you! We invite you to share your views on private debt and today’s environment by completing a brief 2-minute survey. We look forward to sharing the results with you in an upcoming Lead Left issue.

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Everything Happens So Much (Last of Three Parts)

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While the expected pace of Fed cuts has slowed, nothing suggests a change in direction. This course suggests a re-assessment of which strategies deserve allocations. Who will be the winners and losers? How does our high velocity environment complicate these decisions?


One speaker at the GEF spoke about how managers find themselves increasingly behind the curve. This puts them in “a reactive, off-balance mode, unable to anticipate and capitalize on trends.” The result is “suboptimal decisions: blunt, defensive, and tactical.” 


Finally, in a world of ever-changing workplace conditions, talent management becomes challenging. Workforce optimization is a moving target because skillsets are so varied and attitudes generational. Ever-present is the risk of disruptive cultures from leadership not setting consistent values. These dynamics all impact execution in ways that are difficult to undo...

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Chart of the Week

A World Away

Fund managers are looking increasingly to global issues for biggest risks. 

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Source: The Daily Shot, BofA Global Research


(Past performance is no guarantee of future results.)

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PDI Picks

Challenging notions of secrecy 

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Read the column from Jiri Krol of the Alternative Credit Council here


The Managed Funds Association has defended private credit against claims that it is guilty of a lack of transparency. 

One of the most contentious aspects of private credit is transparency – whether deserved or not, a perceived lack of it is something that has caught regulatory attention. However, a new white paper posted by Washington-based industry body the Managed Funds Association argues against the common notion that private credit, especially direct lending, is something that takes place in the shadows...

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Contact: Andy Thomson / Private Debt Investor

Leveraged Loan Insight & Analysis

Leverage on middle market sponsored deals increased to 4.76x on average in 3Q24

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Total leverage on sponsored middle market deals climbed to 4.76x on average in 3Q24 from 4.61x in 2Q24 and was the highest quarterly level recorded since 1Q22...

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Contact: CJ Doherty / LSEG

The Pulse of Private Equity

Median EV/revenue multiples on PE deals below $25 million

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While we do not believe the much-feared valuation reset is in the cards, we do believe the uptrend in EBITDA multiples will be disrupted as deal volumes expand, especially among PE owners selling to other PE firms...

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Contact: Garrett Black / PitchBook

KBRA Direct Lending Deals: News & Analysis

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TTM Default Volume, Count

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Contact: Eric Rosenthal / KBRA DLD

Middle Market & Private Credit

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Record U.S. BDC Unsecured Debt Issuance Helps Address Refinance Needs

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Record debt issuance by Fitch-rated business development companies (BDCs) in 2024 has improved funding flexibility and is indicative of expansion of the investor base for issuers, Fitch Ratings says...

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Contact: Brad Hamner / FitchRatings

Covenant Trends 

Share of New-Issue Institutional Loans with a Pick-Your-Poison Provision by Quarter

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Contact: Steven Miller / Covenant Review

High-Yield Bond Statistics

Launched Volume

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New-issue Yields

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Weekly Fund Flows

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Weekly fund flows source: Lipper

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Contact: Robert Polenberg / LevFin Insights

Debtwire Middle-Market

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The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 11.3% as of 14 October) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses that tend to be below investment grade or not rated, with most lending comprising of senior secured loans)...

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Contact: Suneet Chandvani/ Debtwire 

Private Debt Intelligence

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Management fees for private debt second lowest

in private markets

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Read more in Preqin’s Private Capital Fund Terms Advisor 2024 report 


Although private debt has been the hot ticket for investors for the past few years, fund managers are now finding it harder to raise funds...

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Contact: William Bennett-LynchPreqin

October Update: Middle Market Deal Terms at a Glance

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Contact: Stefan Shaffer / SPP Capital Partners

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This publication is a service to our clients and friends. It is designed only to give general information on the market developments actually covered. It is not intended to be a comprehensive summary of recent developments or to suggest parameters for any prospective financing opportunity.