After a year of upheaval, private equity and venture capital dealmaking ended last year on a strong note in the European Union and the U.K., and that momentum is poised to continue. Consider where the industry stood at the beginning of 2020. After the Conservative Party’s decisive victory in late 2019 and the promise of a deal on Brexit, private ... READ MORE >
How SPACs and direct listings are reshaping the capital markets
The volume and dollar value of public listings went on a tear last year as private companies took advantage of a bullish stock market to raise cash at attractive valuations. Activity in January indicates that this momentum has carried over into the new year with three methods of going public -- special purpose acquisition companies, direct listings and ... READ MORE >
CHART OF THE DAY: The SPAC boom accelerates
Activity among special purpose acquisition companies has continued so far this year at its breakneck pace of 2020. With January more than half over, announced listings for SPACs have already surpassed the combined total for the first five months of last year. At this pace, January will match or possibly exceed the record-setting month of last September, ... READ MORE >
Private equity dealmaking surges, with gains in the middle market
After a quiet period set off by the coronavirus pandemic, private equity deal activity in the United States surged through mid-November as investment managers prepare for a possible tax policy change under President-elect Joe Biden. And the middle market has seen an uptick in deals. The overall surge has been striking, with the number of U.S. and ... READ MORE >
CHART OF THE DAY: Markets prepare for favorable clean energy policies
Joe Biden’s clean energy plan has recently been a point of focus. And the prospect of a Biden victory in the presidential election has spurred a rise in stocks set to benefit from his proposed $2 trillion package, which is meant to kick-start the nation’s economy toward net-zero carbon emissions by 2050. By contrast, returns for oil and gas producers are ... READ MORE >
CHART OF THE DAY: Hedge funds are faring well, but there is a range
Hedge funds are faring well after years of lackluster results, but the returns have not been uniformly strong. A closer look at the returns shows a range of results within strategies and even substrategies. For example, data from Hedge Fund Research’s subindices show that returns for the equity hedge strategy through September have ranged from as high at 17% ... READ MORE >
CHART OF THE DAY: Business development companies show continued risk
Business development companies are still lagging the market in a sign of persisting concern over the performance of loans to small and midsize businesses. Although default rates and losses in BDC loan portfolios have not been as dire as initially expected during the depth of the market panic in March, BDCs have struggled to recover, even as the broader ... READ MORE >
CHART OF THE DAY: A record year for SPACs
Special purpose acquisition companies are continuing their blockbuster year, with dollars raised in 2020 already beating the total from the previous 10 years combined, according to data from Bloomberg. And with more than two months remaining in the year, the number of transactions has doubled the record set last year. The boom is likely to continue as ... READ MORE >
CHART OF THE DAY: What story is the high-yield bond market telling us?
Changes in stock and high-yield bond valuation levels have diverged since the start of September, a shift after largely tracking each other since the beginning of 2020. Stocks reached a peak in early September and have since returned four straight weeks of decline through the end of last week. Although yields are starting to creep up, which would bring ... READ MORE >
Once derided, special purpose acquisition companies go mainstream amid turbulent markets
It wasn’t too long ago that there was an order to the universe when companies wanted to go public, and the traditional initial public offering was at the top of the list. Ranking near the bottom – the province of often-questionable listings – was an investment vehicle called the special purpose acquisition company, or SPAC. Its approach seemed to flip the ... READ MORE >