The return of distressed debt Special situations are emerging as a key fund focus in the 2023 mid-market, as managers respond to growing signs of distress driven by macroeconomic conditions. Interviewed for our PDI Mid-Market Lending Report 2023, Ed Testerman, a partner at New York-based fund manager King Street Capital Management, told us there are…

Direct lending on the rise in Asia-Pacific The strategy is outshining distressed debt in the region, but fundraising for all types of private debt may be more challenging over the next year. Last week saw the Fairmont Singapore play host to our 2023 APAC Forum, with a record number of delegates keen to discuss the…

US pensions dig deep We present some of the key findings from our Investor Report for 2022. US-based public pensions were among the largest allocators to private debt during 2022, though their publicly available data made it much easier to find commitment data for these institutions, making up 13 of the top 15 LPs in…

Reflections on distress Looking back on capital accumulation in recent years, investor anticipation of distressed debt opportunities grew – sometimes without reason. With distress a major talking point again, here are a few observations from a glance at our fundraising data: Waiting for the wave: Much of the recent history of distressed debt fundraising has…

An ESG journey still in its infancy Private debt and ESG don’t have a long history together, but there are signs of much-needed progress being made. Long gone are the days when lenders were commonly described as the back-seat drivers in private equity-sponsored transactions. While equity financiers market themselves on their ability to bring operational…

Few signs of waning appetite While economic pressures grab the headlines, private debt is forging ahead with investor support apparently remaining solid. There may be over-allocation issues for some investors but there are few signs that current macroeconomic pressures are translating into waning appetite for private debt…. Subscribe to Read MoreAlready a member? Log in

Moving into the middle Positioned in between senior debt and equity, subordinated debt providers are catching the attention of investors. As the world enters a new economic era, firms need new financing options to help them grow in a more challenging environment. Increasingly, hybrid debt/equity and subordinated debt are being used by corporates which want…

Fundraising holds up well The volume of capital gathered remained at healthy levels last year, although the number of funds closed sank to new lows. It wasn’t a record-breaking fundraising year for private debt in 2022 but, with concerns about the economy growing, there were few signs of limited partners changing their positive view of…

Direct lending stays in favour with LPs With few signs of trouble emerging the strategy is still going strong, but for distress the outlook is more mixed. Direct lending strategies remain top of the shopping list for investors in private debt, with 47 percent of LPs planning to invest more in those strategies during 2023…

LPs: over-allocated but still optimistic Our Perspectives 2023 study reveals some practical issues for investors but a determination to continue committing to private debt due to its strong performance. As we head through the early months of 2023, some 18 percent of limited partners currently describe themselves as over-allocated to private debt…. Subscribe to Read