Investors Planning Larger Allocations to Private Debt Across all Regions Preqin research into the private debt industry finds that while investors in all regions are currently below their target allocation to the asset class, there is significant fluctuation between regions. Despite private debt in North America and Europe playing a crucial role in fundraising… Login
Private Debt Firms Maintain Lower Management Fees Negotiating appropriately structured fund terms and conditions has long been a key issue for investors across all alternative asset classes. Until recently, the traditional “2 & 20” fee structure for private equity funds has been widely used, but in the past several years these arrangements have become less…
Distressed Debt Fundraising Overtaken by Direct Lending in North America During the Global Financial Crisis (GFC), the distressed debt market in North America established itself as the driving force behind the emerging industry of private debt in the region. Throughout 2007 and 2008, an aggregate $80bn was raised through distressed debt vehicles as investors allocated…
Private Debt Developing in Asia Although the private debt market in Asia remains substantially smaller than the more developed credit markets in Europe and North America, data from Preqin points to a growth in the Asia-focused industry. Seventeen private debt funds principally focused on Asia closed in 2015 raising $6.1bn in aggregate capital. This represented…
Credit Strategies Hedge Funds Face Testing Times Credit strategies hedge funds saw a trade-off between limited volatility and near-neutral returns through 2015 and the opening quarter of 2016. Quarterly performance through the period saw highs of 2.20% (Q1 2015) and lows of -0.96% (Q3 2015), as credit strategies funds recorded lower volatility than the wider…
Private Debt Industry Set for Growth in Germany Lending to Germany-based companies by private debt funds has typically been hindered by the requirement for fund managers to hold a banking license. This strict approach towards banking regulation has led a limited alternative lending market in the region; Preqin’s Private Debt Online contains details for 15 Germany-based…
Investor Appetite for Private Debt For the first time in the history of the private debt asset class, investors surveyed by Preqin in December 2015 are planning to commit more capital to Europe-focused funds than North America-focused funds. While both of these regions have traditionally attracted strong investor interest, only in recent years has regulation,…
European Direct Lending Surpasses North America Direct lending has become a staple element of the private debt market in both North America and Europe in recent years, providing investors with an alternative risk/return profile compared to more traditional mezzanine or distressed debt opportunities. However, differing regulatory environments between the two regions have proved a boon…
Private Debt Fundraising: Will the Momentum Continue This Year? According to Preqin’s Private Debt Online, the level of aggregate capital raised ($93bn) in the private debt industry in 2015 reached its highest level since 2008 ($99bn), with this momentum set to continue as we enter the second quarter of 2016. Twelve months ago, there were…