November 2022 Debt Advisory Market Update

Share this article

Private debt market update

Choppy market conditions are forcing borrowers to get creative on their financings. 


  • While market conditions remain choppy, deals continue to get completed especially in the private debt markets
    • Deal volume in Q3 was $39 billion, down from $57 billion in Q2, but in line with 3Q’21’s $38.5 billion and ahead of the $38 billion completed in the broadly syndicated markets (leveraged loans and high yield bonds combined)
      • The public markets, on the other hand, had amongst their worst quarters since the Credit Crisis with $16.9 billion of high yield bonds and $21.4 billion of leveraged loans closing down 62% and 86% respectively from Q2’22
      • With the appetite of underwriting banks significantly lower the private markets look to continue to steal market share
      • Additionally the private markets remain better suited to whether a downturn as they are less susceptible to the volatility of the public markets and have limited exposure to capital charges and forced liquidations
    • Fundraising remains active, albeit well below 2021’s record; managers closed $18.5 billion in Q3’22, down from $19.3 billion in Q2’22; most of this money is going to larger funds, as there were fewer total funds closed