Executive Summary Yields and relative value in private credit remain high. Pemberton’s mid-year review looks at the trends of the first 6 months of the year and finds an overall improved picture with strong momentum for private credit: Opportunities up, margins tightening, but yields and relative value remain high. The trends observed in Q4 2023 have […]
Executive Summary Yields up, leverage down and volumes of investment opportunities increasing. As expected, M&A activity picked up in Q4 2023 after a relatively subdued market earlier in the year. In 2024, we expect the volume of activity to be higher than in 2023, while remaining below the pre-rate hike peaks of 2019 and 2021. […]
The European macro outlook continues to be supportive for private debt.
Q1 2019 saw a broad rally across asset classes to levels last seen before the sell-off in Q4 2019.
Q3 saw the ~75bp summer widening in syndicated loan markets completely reverse in the face of dwindling supply, negligible pipeline and record CLO issuance. However, recent market weakness has seen syndicated loan yields start to widen once again.
We are seeing increased competition in the upper end of private debt markets (€200m+)
Despite concerns of rising populism in Europe and further afield, strong corporate earnings and a low default environment continue to be supportive for direct lending in Europe.
The positive market tone seen at the end of 2017 has continued during the first quarter of 2018 with the Eurozone GDP forecast at 0.6%1 for Q1, the same pace of growth as Q4 in 2017.
Dry powder – the amount of money raised by fund managers that has yet to be deployed – is an in-vogue topic.
Dry powder – the amount of money raised by fund managers that has yet to be deployed – is an in-vogue topic.
We attended the one day Private Debt Summit in Berlin on Monday 25th February, and we have observations that are relevant to the European Direct Lending market.
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