Private Debt Deals: Structural Shifts in a Late-Cycle Market
NEW YORK, Nov. 11, 2019 /PRNewswire/ -- CEPRES' latest analysis shows the Pricing multiples for the top 25% deals in North America, are rising at a much faster pace compared to the rest of the market.
In contrast to the North American market, European pricing shows a tighter spread among the quartiles which suggests that it is even more difficult for GPs to source and invest in opportunities that are particularly cheaper compared to the rest of the market.
Consequently, this means there is less room for returns driven by multiple expansion compared to North America with a broader spread of pricing multiples giving GPs a better chance to get a return boost through pricing arbitrage.
The full report is available to CEPRES members from: https://www.cepres.com/latest-intelligence-for-lps
Commentary:
"Today, Second Lien and Unitranche deals have replaced the role of traditional Mezzanine to fill the funding gap in both sponsored and non-sponsored transactions. Overall the use of private debt has increased across the board and it remains to be seen how the increasingly crowded private debt market will evolve in the coming years."
Christopher Godfrey, President, CEPRES.
About CEPRES
CEPRES is the leading digital platform for investment analytics & data solutions for private capital markets. CEPRES began in 2001 as the Center of Private Equity Research and was the first to 'look-through' private market funds to underlying deal and asset performance. Today, our award winning online platform securely connects thousands of professionals in the largest private investment network in the world. CEPRES combines the most secure digital data exchange with sophisticated SaaS solutions and expert analysis frameworks to empower LPs, GPs and related professionals. Through CEPRES decision makers can secure their investment data to gain true insights on their portfolio of funds down to single operating assets within a confidential yet fully flexible framework.
The CEPRES platform includes a network connecting buy- & sell-side market participants. Institutional Investors (LPs), Fund Managers (GPs), Advisors, Administrators, Fund of Funds and other investment professionals interact on one platform: GPs confidentially benchmark their track record, attract fitting capital sources and demonstrate their alpha to investors. LPs forecast their portfolio outcomes, optimize asset allocations and enhance due diligence.
To date over 2,300 GPs & LPs have securely exchanged investment data of over 7,400 funds and 75,900 deals worth over $27.2 Tr. in Enterprise Value.
For further information visit www.cepres.com.
For more information about this release or to schedule an interview:
Contact: Birgit Wiggert
Tel: +49 (0) 89 232 495 628
Email: [email protected]
SOURCE CEPRES
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