Why it’s now even harder for first timers The lack of in-person meetings as a result of covid-19 is an added hurdle for debut funds, but a deal-by-deal approach could still win support. First-time funds have not had an easy time amid a competitive fundraising environment and the rapid spread of covid-19 will only make
How does the dry power get invested now? The market is pausing for thought at a time when there’s plenty of capital waiting to find a home. One constant topic of PDI’s conversations with the market over the last few years has been the inevitability that at some point something would trigger a downturn....
Is this the macro event that will drive distressed? With Covid-19 spreading to more countries around the world, the climate for businesses is changing fast. Fund managers at the pure end of the distressed market are only happy when it rains, as the song goes. But up until now, it hasn’t been raining. Given a
Are there tastier options than vanilla? Senior debt is still fundamental to many investors’ private debt portfolios. But, as competition increases, LPs are increasingly hunting for less populated spaces. While there is little evidence of investors falling out of love with the senior secured private debt market, competition for mid-market direct lending opportunities is such
Distress is back in fashion Amid a subdued year for private debt fundraising in 2019, distressed debt proved to be a magnet for investors. Last year saw the lowest level of private debt fundraising since 2014, indicating that the asset class may be losing some of its sheen – or that investors are taking a
Why investors are getting real In the UK and Europe, appetite for real estate and infrastructure debt is on the increase. At Private Debt Investor, our main focus is on corporate loans, typically supporting M&A activity for middle-market companies sponsored by private equity firms. It is, if you like, our ‘bread and butter’....
Private debt secondaries: On the cusp? Now a well-established part of the private equity universe, secondaries remain very much on the periphery of the private debt world. This seemed to be confirmed by Private Debt Investor’s recent LP Perspectives 2020 survey, which found that only 11 percent of investors who took part were planning to
RECESSION IS THE LOOMING CONCERN When considering the biggest threats in 2020, investors are most fearful about a possible recession in core markets or an escalation of the ongoing US-China trade war. These are seen by respondents to our LP Perspectives 2020 survey as the most likely factors to have an impact on performance in
ABL draws significant LP interest Asset-backed lending is one of the credit strategies more investors are becoming attuned to. There could be another credit strategy set to pick up traction, according to PDI Perspectives 2020, our annual LP survey....
The Asian opportunity for managers More investors say they are looking to deploy capital into the region, and the possibilities go beyond identifying new LPs. Not surprisingly, many alternative asset investors are considering the Asia-Pacific as one of the emerging markets in which they are likely to invest over the next 12 months, according to