Pitchbook to Get Boost with S&P’s Leveraged Commentary and Data Business
Posted on 04/04/2022
S&P Global entered into an agreement to sell its Leveraged Commentary and Data (LCD) business and its related family of leveraged loan indices to Morningstar Inc.
Morningstar has agreed to purchase LCD for US$ 650 million in cash, comprised of US$ 600 million paid at closing, subject to adjustment, and a contingent payment of up to US$ 50 million of which is payable six months following the closing upon the achievement of certain conditions related to the transition of LCD customer relationships. The transaction is subject to customary closing conditions, including antitrust approvals. LCD is a leading research group that provides highly differentiated and proprietary research on the U.S. and European leveraged loan, high-yield bond, collateralized loan obligation (CLO) and mid-market/direct lending markets. LCD reports having more than 60 employees.
“Leveraged Commentary and Data has been a market-leading and trusted brand in the global markets for over two decades. We are pleased that the people that built LCD will continue to contribute to the markets under new ownership,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global.
S&P Global pledged to divest the LCD business as a condition of regulatory approval from the European Commission on its merger with IHS Markit. S&P Global and IHS Markit completed their merger on February 28, 2022.
Morningstar plans to integrate the private debt data giant into its PitchBook subsidiary. Morningstar bought Pitchbook in 2017 for US$ 225 million. Pitchbook CEO John Gabbert says the company has over 2,500 people and “is nearing 8,000 institutional customers.”
CUSIP ultimately sold to FactSet for US$ 1.9 billion.
