Will Europe Direct Lending Activity Outpace North America? Direct lending is a relatively young strategy, but has gained traction in the past five years or so, quickly becoming one of the more dominant private debt fund types. As with the larger private debt universe, North America and Europe account for the majority of direct lending…
Private Debt Capital Distributions Reach Record Highs Private debt has a history of strong returns, and the asset class has consistently met, and often exceeded, investors’ performance expectations. In fact, according to Preqin’s latest survey of institutional investors, 91% of investors said that private debt has met their performance expectations over the past 12 months,…
Private Debt Goes Global As the alternatives assets industry continues to grow, Preqin is launching an initiative examining the future of alternatives. In conjunction with key industry participants, Preqin takes a five-year look into the future to see where the private debt market will be, what changes fund managers are planning for and how investors…
Asia Private Debt Deal Activity Falters While the private debt industry has seen rapid growth in North America and Europe, the industry in Asia has faltered, and private debt deal activity in the region has been mercurial. In 2013, there were 21 deals made in the region, but just 14 the year after. 2015 saw…
Private Debt Remains Popular for Investors Private debt has seen great success in attracting investors, and as at H2 2018 over a third (36%) of institutional investors allocate capital to the asset class, according to Preqin’s latest survey of institutional investors. Investors cite portfolio diversification as the main reason to invest in private debt, alongside…
Distressed Debt Outperforms Other Private Debt Strategies The private debt industry has historically been dominated by three main strategies: direct lending, distressed debt and mezzanine, which collectively account for around four-fifths of private debt assets under management. Median returns for these strategies, and for private debt overall, have been strong, and returns have consistently hovered…
Largest Private Debt Fund Managers Dominate Industry The private debt industry has grown exponentially over the past decade, holding more than $650bn in assets as of the end of 2017. However, as with other private capital asset classes, the industry is seeing an increasing amount of capital being concentrated among a small number of the…
Private Debt Assets under Management Break New Records Preqin finds that private debt assets under management have risen for the third consecutive year, reaching a record $667bn at the end of 2017. This represents a 13% increase from December 2016 when private debt assets under management had yet to hit the $600bn mark. Private debt…
Distressed Debt Sees Strong Performance Distressed debt has seen strong success, particularly in Q2 2018: the strategy led private debt fundraising during the quarter and the majority (60%) of investors tracked by Preqin are planning to seek out distressed debt vehicles over the next 12 months. The fund type has also seen favourable returns, even…
Investors Take Notice of Distressed Debt Preqin currently tracks more than 3,300 private debt investors globally. The majority (55%) of these investors are based in North America. A further 25% are based in Europe and 14% are based in the Asia-Pacific region. The 10 largest investors allocate a total of $66bn to the private debt…