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PDF | Research | Week of Nov 11 2024

Quote of the Week

“We believe we’re now advancing towards the stage in the cycle that is always

the most fun”

– Stephen Schwarzman, chief executive, Blackstone.

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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.

Take survey

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Private Equity Now: The LP Perspective

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Over the past two weeks we’ve touched on the distribution dilemma in private equity, and most recently on the perspectives and tactics used by GPs. This week, we dive deeper into the LPs perspective and how allocators are managing private equity programs in the current environment. To quantify the issues: LPs observed a 9.5% distribution rate in 2023, well below the 2015-2019 average of 23.6% (per Private Equity International and MSCI). This trend poses a host of challenges for LPs who rely heavily on distributions.


Whether it’s meeting financial obligations of beneficiaries, funding new investments or balancing portfolio allocations, LPs must rethink their cash flow and liquidity management initiatives. Today’s dearth of realizations has LPs increasingly turning to the secondaries market as a strategic liquidity tool. This dynamic is driving LP-driven secondaries to ~$83 billion of volume in 2024, up from ~$25 billion in 2020 (per Jefferies.)...

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Chart of the Week

Secondaries on the March

The growth of equity secondaries is fueled by both LP and GP liquidity needs. 

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Source: Jefferies


(Past performance is no guarantee of future results.)

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PDI Picks

Hard-won gains can be retained

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Read PDI's Report: LP Perspectives 2024 report


Respondents to a PDI survey believe that private debt will not easily give up the share it has won at the larger end of the market. 

In 2022 and 2023, as talk of private debt being in a so-called ‘golden era’ grew louder, one of the main reasons was the way in which it had achieved territorial gains at the larger end of the market – promoting itself as an alternative source of finance (and sometimes as the only game in town) at a time when the broadly syndicated market had effectively pulled up the shutters...

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Contact: Andy Thomson / Private Debt Investor

Leveraged Loan Insight & Analysis

Resilient secondary loans, light primary calendar carry repricing trade through October

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The share of institutional term loans trading above par averaged 33% in October, advancing atop 31% in August and 32% in September. And secondary loans have traded nowhere but up through the first two weeks of November, with par-plus loans now accounting for 43% of the secondary market, a level not sustained since July...

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Contact: Chris Piccirillo / LSEG

The Pulse of Private Equity

PE-backed healthcare services company count by subsegment and hold time

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We expect to see three things happen in physician practice management companies (PPMs) in the next year or so. First, a few large platforms have traded recently, and a few more are close to the finish line...

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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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Fitch’s Privately Monitored Middle Market Portfolio Overview − 3Q24 (Part 2)

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Download Report


In the charts above, Fitch presents aggregate data for Middle Market companies that it privately rates on a monitored basis for asset managers, defined as:

·      in the area of $500 million of debt; or

·      $100 million of EBITDA or below...

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Contact: Brad Hamner / FitchRatings

Covenant Trends 

Accordion Inside Maturity

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Download Data

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 11.2% as of 7 November) 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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Investor appetite for private debt funds

continues to grows

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Read more in: Private Debt Q3 2024: Preqin Quarterly Update


Private debt fundraising value is on the recovery path this year. The $50.5bn raised in the third quarter of 2024 is the highest quarter so far this year, and more than double the $24.3bn raised in Q1. In the first nine months of 2024, fundraising tracked at 75% of what it was at this time in 2023...


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Contact: William Bennett-LynchPreqin

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.