Private Capital Quarterly Investment Update (2Q 2021)

ABOUT US : Collapsed
INVESTMENT STRATEGIES : Collapsed
FINANCING SOLUTIONS : Collapsed
INSIGHTS : Collapsed

Private Credit Quarterly Update (2Q 2021)

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MetLife Investment Management Private Capital Team
AUG 25, 2021

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Private Placement Debt

Introduction

MIM’s Private Credit business originated $6.4 billion1 in private placement debt and private structured credit for the first half of 2021, across 107 transactions. This includes $1.2 billion of investments originated on behalf of institutional clients. Our private credit debt portfolio grew to $102 billion in AUM as of June 30, 2021, which represents nearly 80% of private capital group AUM.

Corporate Private Placement Market

Private Placement market2

Private corporate issuance through June 2021 totaled $36.0 billion, down from $38.4 billion through the first half year 2020. 2021 issuance was primarily driven by opportunistic refinancing opportunities as companies plan for an eventual emergence from the pandemic clouded economies. The average deal size for 2021 was $195 million across 185 issuers. This is compared to the 224 issuers in 2020 with an average deal size of $171 million.

During the second quarter, issuance came in at $17.9 billion, down from $23.8 billion during 2Q 2020. The reduction was driven by less traditional industrial origination with issuers generally having strong liquidity. Private issuance was led by activity in North America with 59% of total issuance. European volume (primarily the UK) was 28%, Australia 9%, Asia 3% and Latin America < 1%. USD made up 75% of issuance with Euro at 12%, Sterling at 12% and AUD < 1%.