Private Capital Subscription Credit Usage on the Rise Very few developments in alternative assets have attracted such a mixed response as subscription credit facilities (also known as equity bridge facilities, subscription line facilities or capital call facilities). Although they are nothing new, there is a wide range of views between fund managers and investors –…

UK Dominates European Private Debt Europe is the second most active region for private debt after North America, but the scale and nature of activity varies widely throughout the region. While the potential investment opportunities and industries are more diverse, the fund management industry is very homogenous, and is dominated by firms based in the…

Distressed Debt Funds Stall in 2019 Distressed debt has long been a major component of the private debt industry. Around the time of the Global Financial Crisis (GFC) in 2008, the strategy raised a record $45bn in capital – a level that has never been equalled – and performance of funds raised around this time…

Private Real Estate Debt Attracts Investors The private real estate debt market has grown significantly in recent years as fund managers have sought to capitalize on the opportunity provided by banking regulation, and investors have targeted exposure to the stable income and portfolio diversification that debt investments can provide…. Login to Read More...

Private Debt in Asia Struggles to Gain Ground The Asian private debt market is still relatively small. While the industry has grown rapidly in the more developed markets of North America and Europe, expansion has been slower in Asia, and the region has yet to reach a ‘critical mass’, so activity remains cyclical…. Login to

Private Debt Keeps Performing Well Over the one-, three- and five-year periods to June 2018, mezzanine funds have outperformed all other private debt strategies, generating an annualized return of 11.5% over five years. In contrast, direct lending funds have produced the lowest returns over these timeframes, generating just 4.7% over five years, while distressed debt…

Private Debt Investors Remain Cautious During Q1 2019, private debt investors issued 249 fund searches and mandates for investments they are targeting in the coming 12 months. Perhaps due to their concern about the prospect of an equity market downturn, it seems that institutions are taking a generally cautious attitude to the asset class…. Login

Private Debt Funds in Market The private debt fundraising marketplace is becoming increasingly crowded: as of the start of April 2019, there are 407 vehicles seeking a total of $182bn from investors. These figures have continued to increase from the 395 funds seeking $168bn at the start of the year to reach a new record…

Private Debt Fundraising Falls in Q1 Private debt fundraising has been cyclical in recent quarters, with significant spikes in Q4 2017 and Q2 2018 failing to generate consistent momentum. The asset class has certainly not accelerated in the opening quarter of 2019: as well as the number of fund closures falling from 57 in Q4…

Investor Satisfaction Dims in 2019 Private debt investors remain committed to the asset class, and their overall perception of the industry is positive. But Preqin’s latest surveys find that investor satisfaction has dimmed slightly at the end of 2018, as institutions foresee challenges for the industry in the months ahead…. Login to Read More...