PDF | Research | Week of Jan 23, 2023

The 2023 M&A Outlook -Continued

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As it turns out, there’s no better lens through which to examine the effects of the current economic environment than US middle market M&A activity. As we heard last week from five top investment bankers, a wide range of indicators – including volume, valuations, financing and sector rotation – flashed across the market in the wake of interest rate hikes, public asset volatility, and economic headwinds.

Before digging into panel’s expectations for this year, let’s reprise 2022 highlights. Global M&A volume was down 35% and 11% by deal count, and in the US 41% and 17%, respectively. Sponsored deal flow was off 33% for both volume and numbers, but ahead of 2020 numbers.

The unraveling of deal momentum began as early as last February. Though market “choppiness” didn’t take hold until the second quarter when “the bottom fell out of the middle market.”...

Past government disputes on debt ceiling limits have sent market volatility soaring.

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.

Inflation and interest rates enter investors’ list of top three worries this year, as fears of a recession persist.

Rising interest rates and inflation have become the key concerns for investors taking part in Private Debt Investor’s LP Perspectives 2023 Study, for the first time pushing extreme market valuations out of the top three factors...

With very challenging conditions in the syndicated loan market, more and more sponsors turned to the direct lending market for funds in 2022. Even in the fourth quarter, when direct lending contracted, the ratio of direct...

Contact: Diana Diquez/ Refinitiv LPC

PitchBook’s latest US PE Breakdown, the annual version, showed a seismic decline in PE exits last year. Estimated exit volume fell by 28% while exit value fell a much sharper 63%. In all, PitchBook estimates $322.9 billion in exit value...

Private debt dry powder continues to rise in line with the growth of assets under management (AUM) over 2022, although the ratio of dry powder to AUM fell slightly in the first half of 2022. As of June 2022, dry powder at...

Contact: Laura Messchendorp / Preqin

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

Contact: Hema Oza/ Debtwire