Distressed debt mega funds rising again Fundraising in distressed debt, a major private debt strategy, has been relatively volatile over the past decade. Nevertheless, aggregate capital raised in 2021 rose to $31.7bn, compared with $14.8bn in 2011. The peak of 2020, in which fundraising hit $66.2bn, was boosted by the Oaktree Opportunities Fund XI closing

Direct lending funds increasing in size Direct lending has seen strong fundraising momentum over the past decade, with funds of vintage year 2021 raising aggregate capital of $113.2bn, compared to those with vintage year 2011, which raised $8.2bn. With this, the number of direct lending funds greater than $1bn in size has also increased substantially....

Venture debt funds ready to step in Venture debt is a niche product that could serves as an alternative fundraising option for high growth companies, particularly in the technology sector, that may be struggle over the next few years given the correction underway in technology stocks and venture capital. A total of $15bn has been

Direct lending funds closing above targets Direct lending funds continue to attract investors, with the average percentage of target size at final close increasing dramatically from 108% in 2019 to 145% YTD 2022. However, the average time taken to raise a fund has also increased, from 21 months in 2019 to a record high of

Distressed debt funds witness dry powder build-up post Covid-19 recession Dry powder for distressed debt globally has been growing over the past decade. In September 2021, dry powder made up 35% of the total distressed debt AUM – higher than its historical 10-year average of 32%. This build-up is likely due to the record capital

Strong performance by Asian private debt funds Asian funds significantly lag North America and Europe in AUM despite strong performance. The median net IRR of Asian private debt funds of vintages 2012-2019 is 12.51%, beating their peers in North America (10.00%) and Europe (8.90%)....

Private debt returns rebound in 2021 Despite consistent asset class growth, private debt returns were mostly on a downward path in the past 10 years. The three-year rolling IRR fell from 14.0% in December 2011 to just 5.0% in December 2020. However, performance improved last year, increasing to 7.1% as of September 2021...

Asian regulations hinder private debt fundraising Small and medium-sized enterprises form the majority of companies in Asia, accounting for 97% of business. They often face difficulties obtaining financing from traditional banks, which indicates a huge opportunity set for private debt....

NA consumer discretionary tops PD deals in 2022 The vast majority of deals involving private debt finance in 2022 so far have targeted North America, with 202 out of 289 deals involving North America-based portfolio companies. Globally, 27 deals were in the consumer products segment, of which 18 were in North America....

Special situations fundraising momentum slows Special situations is a niche – but important – segment of the private debt market and attracted interest during the COVID-19 pandemic. Have investors now cooled on the strategy? Early indications from Preqin data suggest that may be the case....