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PDF | Research |Week of Jan 9, 2023

Last Chance to Cast your Vote for Churchill

We are honored to share that Churchill Asset Management has been selected as a finalist by Private Debt Investor for both Americas “Senior Lender of the Year” and “Junior Lender of the Year” in their prestigious annual awards. Winners are determined by industry vote, so please take a moment to cast yours by midnight tonight when voting concludes. We appreciate your support!

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Americas category:

Senior Lender of the Year

Junior Lender of the Year

Vote Today!

Quote of the Week

“The labor market right now is a blessing and a curse.”

– Simona Mocuta, chief economist, State Street Advisors.

 
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M&A Outlook for 2023 (Part One)

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The beauty of good vacations, particularly year-end breaks, aside from their restorative powers, is the opportunity to reflect on the big picture. On the work front, that meant we moved beyond 2022 rate and recession worries to a thoughtful consideration of what comes next.


Part of that appraisal is how dealmakers will find ways, as they always do, to be commercial. Indeed, the urgency of putting LP money to work will be a factor for private equity sponsors. The question is, as we’ll hear in next Wednesday’s exclusive “Lead Left Presents” M&A webinar, how the developing economic themes in 2023 impact auctions, valuations and deal activity?


2022 was a story of two halves. The first half began with a Dow over 36,000 and a Fed funds rate of zero...

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The Lead Left Presents:

2023 M&A Outlook

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January 18, 2023 | 11 AM-12 PM ET | Live Virtual Event

Please join us for The Lead Left’s exclusive webinar featuring five leading middle market investment bankers from Baird, BlackArch, Cascadia Capital, Houlihan Lokey, and Lincoln International. Topics will include deal activity, the economic and market backdrop, industry commentary, and auction dynamics.

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Chart of the Week

Inflation Allocation

As prices edge down from mid-2022 highs, shelter and services remain under pressure.

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Source: Steven Rattner, US Bureau of Labor Statistics, Bloomberg

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SFNet’s Asset-Based Capital Conference 2023

January 31 to February 1, 2023 | Encore at the Wynn, Las Vegas, NV

 

SFNet’s Asset-Based Capital Conference 2023, “The Great Reboot,” is about setting new strategies for a new world.

 
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Stat of the Week

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Loan Stats at a Glance 

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PDI Picks

Time to move out of the mainstream

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As the plain vanilla part of the private debt market comes under pressure, investors are turning their attention to more specialised approaches...

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Leveraged Loan Insight & Analysis

Syndicated middle market loan

volume falls 10% in 2022

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In 4Q22, syndicated middle market lending posted its lowest quarter since 1Q21 amid bouts of market volatility and economic uncertainty. Issuance declined to US$35.5bn in the most recent quarter from US$40.1bn in 3Q22...

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Contact: CJ Doherty/ Refinitiv LPC

The Pulse of Private Equity

Will take-privates move to the middle market?

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Take-private transactions tend to be of the cannonball variety. Big, splashy, destined for headline coverage—terms that aren’t really associated with the middle market. But one of our predictions for the year ahead is that take-privates...

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Contact: Alex Lykken / PitchBook

Covenant Trends 

Average Minimum Day-One Capped

Basket Capacity, YoY

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Contact: Steven Miller / Covenant Review

High-Yield Bond Statistics

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Weekly fund flows source: Lipper
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DL Deals: News & Analysis

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Private Funds Finance: Big cushions

offer protection against defaults

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The private credit market is about to face its biggest stress test yet: Borrowing costs have more than doubled in the past 12 months for portfolio companies, and the Fed signaled last week that additional rate hikes were in the works for 2023...

Contact: Kelly Thompson/ Direct Lending Deals

Private Debt Intelligence

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Growth of APAC-focused private debt

AUM faster than other regions

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APAC-focused private debt assets under management (AUM) grew 24% in the six months from December 2021 to June 2022, standing at $92.6bn. The pace of growth surpassed both North America and Europe, which grew 10% and...

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Contact: Valerie Kor / Preqin

Debtwire Middle-Market

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Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield

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Contact: Hema Oza/ Debtwire 

Middle Market Deal Terms at a Glance

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Select Deals in the Market

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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.