Archives| PDF| Research |Week of Oct 12, 2020
Third Quarter 2020 Review and Fourth Quarter 2020 Outlook
“I wonder whether there’s been a bit of a Y2K-effect where people rushed to set up home offices and get their gardening kits.”
– Alexander Altmann, head of equity trading strategy, Citi.
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The Tyranny of Dry Powder
A recent note from our good friend at Bloomberg, Kelsey Butler, pointed to a study in Astrobiology highlighting 24 planets that could sustain life. Criteria for “superhabitability” include home stars younger than the Sun, Earth-like masses, and atmospheres with warmth and moisture greater than Earth.

All these planets are over 100 light years away – not ideal for COVID getaways. But for those who don’t mind long trips with the kids, such conditions could mean more biodiversity and longer lifespans.

Our thoughts turned to things extraterrestrial as two of our content partners published findings on third quarter fundraising.

Preqin’s Private Data report shows global fundraising off significantly at September 30 (see our Chart of the Week)...
Just released! Post-pandemic: The New Healthcare
  • The Post-COVID Doctor/Patient Relationship
  • The New Healthcare: COVID and the Government
  • PE and the New Healthcare
Readers' Say
This Week’s Question
Lenders: What is your prediction for 4Q20 deal flow?
(*All responses are confidential.)
Back to nearly pre-COVID levels
Higher than pre-COVID levels
Two-thirds of pre-COVID levels
One-third of pre-COVID levels
No change from 3Q20
Last Week's Results
Lenders: What is the most decisive factor in winning a deal today?
Chart of the Week
Finding Private Debt
The number of private debt funds raised globally slumped in the third quarter, but has generally held steady.
Source: Preqin
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
What to make of direct lenders’ prospects?
Direct lending has enjoyed years of tailwinds – now it must confront the headwinds...
Leveraged Loan Insight & Analysis
3Q20 MM sponsored loan issuance picks up
from 2Q20’s low, but still quite anemic
Sponsor-backed middle market volume showed a pick up in 3Q20 to US$5.6bn, up 120% from 2Q20’s post credit crisis low. But volume was still quite dire and over 62% behind 3Q19’s level...
The Pulse of Private Equity
Carveouts – up but not booming
One of the earliest predictions back in March was that PE-led carveout activity would go up. PEGs had dry powder to spend and corporate sellers had liquidity concerns—they were also going to need to concentrate on their core businesses...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Distribution of Accordion F&C Tranche
EBITDA Grower Caps (L3M)
Private Debt Intelligence
Direct Lending and mezzanine strategies
gathered most of the capital in Q3 2020
In Q3 2020, private debt fund managers were able to secure $8.4bn by 20 funds closed. What fund types stood out?...
Debtwire Middle-Market
Leveraged loan market sees a pick-up
in M&A-related deals and dividend recaps
Source: Debtwire Par
Following on from September, the month of October is seeing a steady stream of leveraged loan deals, comprised of M&A-related transactions, dividend recaps and refinancings...
Middle Market Deal Terms at a Glance
Select Deals in the Market
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.