Private Debt: Rise of Covenant-Lite Loans The growth in covenant-lite issuance in the loan market has sparked heavy discussion. The growth of supply in mid-market lending has led to a loss of value, which has in turn brought about a rise in weaker covenants. As investors allocate to private debt, they find themselves increasingly unable

Private Debt slow to adopt ESG Frameworks In most alternative asset classes, ESG has been the acronym on everyone’s lips, but not so much in the private debt industry. A total of 292 private debt fund managers are signatories to ESG/impact investing frameworks tracked by Preqin....

The Rise of Asian Private Debt A growing middle class in Asia has inflated demand for private debt. This swelling middle class has in turn created growth in the SME market, which has led to robust fundraising. Aggregate capital raised for Asia-focused private debt funds has more than doubled from $3.5bn in 2016 to $8.4bn

First-Time Private Debt Funds Struggle to Raise First-time fund managers have struggled to raise capital in what has been difficult year for overall private debt fundraising. Managers closing their first private debt fund raised $9.7bn in total in 2019. The 38 first-time funds closed secured 9% of the total amount raised in the year....

Outlook for Private Debt in 2020 Private debt investors are generally satisfied with the performance of their portfolios. Eighty-nine percent of those Preqin surveyed in November 2019 said that private debt performance had either met or exceeded their expectations, the highest figure among all alternative asset classes....

Women in Private Debt With a growing body of research indicating that more diverse teams and inclusive workplaces directly correlates with stronger business outcomes, the issue of diversity in private debt continues to move up the agenda. Preqin’s 2020 Women in Alternative Assets Report found the proportion of female employees in the alternative assets industry

Private Debt Performance Lags Other Asset Classes Private debt funds have experienced the second-lowest spread of returns over the 2007-2016 vintage period among all private capital asset classes, surpassing only natural resources funds. However, private debt also has the lowest risk factor, with the smallest standard deviation in net IRRs of any asset class....

Private Debt Deals Break New Ground Leverage is a key component in a private equity transaction, used to drive and maximize returns for investors. Banks moving away from the space has opened up more and more opportunity for private lenders, which are better positioned to provide an alternative financing model for borrowers....

Private Debt Investing for the Long Haul Investors in private debt are generally satisfied with the performance of their portfolios. Eighty-nine percent of those we surveyed by Preqin in November 2019 said private debt performance had either met or exceeded their expectations over 2019...

Private Debt Fundraising Market More Crowded Than Ever There a currently more private debt funds in market than ever before. The start of 2020 saw a total of 436 private debt funds on the road seeking a record $192bn in combined capital commitments. This marks an increase in both the number of...