PitchBook parent Morningstar has completed its acquisition of private-debt data provider Leveraged Commentary & Data from S&P Global, forging an integrated research platform that will serve as a one-stop shop for news and research on private finance.
LCD is a leading provider of news, analytics and index products that track the leveraged finance market, with a focus on deal structure, pricing, yield and volume, as well as secondary market performance, private equity-led leveraged buyouts.
With the acquisition now completed, LCD will be a part of PitchBook, which specializes in research insights and proprietary data on the private markets, including private equity, venture capital and M&A.
The transaction, in which Morningstar paid an initial $600 million in cash, subject to adjustments, with a further $50 million contingent payment, comes as Morningstar expects increased demand in data on leveraged loans, along with the expansion of the private credit market.
Alternative asset managers and corporate borrowers in recent years have increasingly used debt to finance acquisitions, business growth, working capital and other liquidity needs. Direct lenders lately have made aggressive moves to capture market share from banks and other conventional lending channels. PitchBook’s Q1 Global Private Fund Strategies Report highlights recent fundraising trends in the market.
Morningstar said it expects to receive an estimated tax benefit from a step-up in tax basis and future deductions as part of the transaction. LCD reported revenue of $56 million last year.