Archives| PDF| Research |Week of July 5, 2021
“The market is on fire.”
- Justin Abelow, managing director, Houlihan Lokey.
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The State of Private Credit in Europe
(Fourth of a Series)
Calculating private credit volume in Europe is a bit dodgy. Even in the US, good numbers have only been available in the last couple years. We can however triangulate from other known metrics.

The par amount of all leveraged loans was €15 billion in 1998, per S&P/LCD. It grew to €20 billion in 2003, €140 billion before the GFC, shrank to €100 billion by 2015, and is now at a record €240 billion. Conservatively assuming one-third is held by non-banks, that puts it just under €100 billion.

That’s consistent with Preqin data. As our Chart of the Week highlights, assets under management for European direct lending is almost $160 billion, including about $50 billion of dry powder...
  • Correlation Nation: Private Credit…and Everything Else
  • Distressed for Success
  • Private Credit – Sector by Sector
  • The M&A Big Bang
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This Week’s Question
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Last Week's Results
Compared to the first half of 2021, loan document flexibility in the second half of 2021 will show….
Chart of the Week
It Takes Un Village
Non-bank European lending AUM is almost $160 billion, including about $50 billion of dry powder.
Source: Preqin
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Driving forward on ESG, but acceleration needed
Private debt managers have made considerable progress but, particularly in North America, there is more to be done...
Leveraged Loan Insight & Analysis
2Q21 M&A loan volume nearly 3 times year ago totals; 1H21 volume two times 1H20 results
Nearly US$175bn in M&A loan volume was completed in 2Q21, a 40% increase over 1Q21 results and almost three times the comparable year ago totals...
The Pulse of Private Equity
2021 on a record-setting pace
PitchBook’s latest PE Breakdown Report, which will publish this Monday, shows a record-setting pace through the second quarter...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Percentage of All Loans that Cleared with the Least Protective Documentation Scores (5/5+/4-)
Private Debt Intelligence
Consumer discretionary tops PD deal activity
in North America
As an industry, consumer discretionary has seen the largest number of private debt deals in North America since 2016, at 1,007 deals with an aggregate deal value of $99.5bn...
Debtwire Middle-Market
Contact: Hema Oza/Debtwire 
Reorg Credit Intelligence
Fiesta Restaurant Group
Agrees to Sell Taco Cabana Business
to Yadav Enterprises Affiliate for $85M
Fiesta Restaurant Group announced that it had agreed to sell all of the outstanding equity of Taco Cabana Inc. to an affiliate of Yadav Enterprises – a restaurant franchisee company that operates more than 300 locations throughout the United States under a variety of brands, including Jack in the Box, Denny’s and TGI Friday’s – for a cash purchase price of $85 million. The transaction is expected to close in the third quarter of 2021.
(To read our Americas Covenants team’s full analysis of the Fiesta Restaurant Group’s decision to sell Taco Cabana click here.)
Contact: Matt Danese/Reorg 
Middle Market Deal Terms at a Glance
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