Private Credit Not Likely to Run Out of Capital, per Report
The loans yield around 10% yearly, a big enticement to investors, and borrower demand is high, according to Turning Rock Partners.
The loans yield around 10% yearly, a big enticement to investors, and borrower demand is high, according to Turning Rock Partners.
Private debt, private equity and infrastructure lead the list in Preqin survey.
U.S. venture fund returns remain negative, but valuations are up and two recent high-profile VC-supported IPOs did well, a PitchBook report finds.
Amid encouraging market performances of other public buyout companies, expect a spate of PE operators to go public, says PitchBook.
Due to high interest rates, among other things, VC investment in new companies and IPO exits are way down from previous years.
Lower valuations and lots of unspent cash are the ingredients for an eventual upturn, says PitchBook.
A host of macro problems leave PE fund investors with just small gains.
Lack of exits, as IPOs are infrequent, has VC managers selling part of their stakes to others, but at a discount.
With an anxiety-prone stock market not showing a lot of lift after last year’s losses, companies are holding off on going public.
Venture capital and private equity boosted their valuations mightily in the past 20 years.
Private debt fundraising has stagnated in the first half of 2022 amid an economic backdrop of rising rates, and a slowdown of global growth.
The copious inflows of fresh capital mostly favor infrastructure projects.