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…. Login to Read

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…. Login to Read More...

Investor outlook on private debt strategies shifts towards direct lending Direct lending is investors’ favoured private debt strategy in 2022, taking over from distressed debt, according to Preqin’s annual Investor Survey. Almost half of investors see direct lending as presenting the best opportunities in 2022, in contrast to last year, where it was selected after…

Private debt displays strong performance over different time periods Private debt funds have performed well over the past year, boosted by rising yields across fixed income assets, as evidenced by one-year horizon IRRs for the period ending September 2021. Private debt funds across all strategies returned 18.7%…. Login to Read More...

Private debt grows as capital flows in Private debt has emerged over the past decade as an attractive asset class for investors and form of finance for companies. Private debt has higher yields than comparable instruments, a shorter duration than some other alternative asset classes, while the prevalence of floating rate structures gives investors some…

Private debt AUM growth to accelerate in next five years Preqin’s forecasting model expects private debt assets under management (AUM) to near $2.69tn by 2026 at a five-year compound annual growth rate of 17.4%, faster than the 12.8% achieved over the ten years to 2020. This is predicted to be the highest rate of growth…

Tighter lending policies in Australia spur private debt growth Stricter bank regulations and tighter lending conditions in Australia in recent years gave rise to opportunities in private debt, and the asset class witnessed its fastest growth so far, with AUM growing 144% from December 2020’s $0.6bn to $1.4bn in 2021. Mezzanine debt continued to account…

Private debt investors’ rising concerns over interest rates The US Federal Reserve approved a 0.25 percentage point interest rate hike on March 16. Private debt investors are protected from the negative consequences of rising interest rates by floating rate agreements. However, rising rates also increase default risk which can fundamentally damage portfolio performance…. Login to

Private debt firms behind the curve on D&I Just 11% of private debt fund managers (251 out of 2,225) have public diversity and inclusion (D&I) policies or initiatives in place, according to Preqin Pro. This puts them third amongst alternative asset classes, behind both infrastructure (21%) and natural resources (17%)…. Login to Read More...

Private debt AUM growth will spur product innovation Preqin expects private debt to be the fastest growing alternative asset class over the next five years, with forecast compound annual growth rate of 17.4% from 2021 to 2026 outpacing infrastructure (16.7%), private equity (15.8%), and real estate (7.1%). This growth would be an acceleration from 15.27%…