Proskauer released results from The Private Credit Group's market survey for 2018. The comprehensive survey features the predictions of top lending institutions, which complement the findings of Proskauer's proprietary deal data report that was released earlier this year. Together, the analysis of the private credit deal terms alongside the survey, provides clients with a unique and in-depth look into the state of the credit markets and forecasts for the remainder of the year.
Key highlights from the report include:
- UK and U.S. interest rates are widely expected to increase, though there is less certainty around the Eurozone
- Respondents are generally optimistic about the year ahead; 88% expect deal activity to stay the same or increase
- Dry powder levels are considered the most important driver of deal flow overall
- Competition is the greatest challenge for dealmakers overall, with high transaction multiples slightly more concerning for respondents from the UK and Europe
- Business Services, Healthcare, Software and Technology, Manufacturing and Transport and logistics are being targeted for investment by ¾ of respondents, with Software and Technology experiencing significant year-on-year growth in the US
- 2/3 of respondents are currently raising a debt fund and 78% plan to fundraise over the next 12 months
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