Distress takes the fundraising limelight Q1 2025 saw a reversal in fortunes, with direct lending making a slow start to the year. In recent years it’s almost felt as if direct lending has been the only game in town. Whenever Private Debt Investor collects global fundraising data, we always break it down by target strategy….
Fundraising bounces back The early signs in 2025 are positive as capital raisers enjoyed a prolific three months and distressed strategies increased market share. The first quarter of the year was the strongest Q1 on record for private credit fundraising with a huge $74.1 billion raised according to PDI data…. Subscribe to Read MoreAlready a
Stresses and strains may trigger a distress revival Distressed debt has adapted to more benign market conditions but may revert to a ‘pure’ form as pressure on borrowers grows. Distressed debt isn’t what it used to be. In the wake of the global financial crisis, there was a once-in-a-lifetime chance to invest in rebuilding a…
Measuring the pain points Liquidity and exits loomed large in our survey of LP and GP concerns. An exclusive PEI survey of more than 100 LPs conducted ahead of our NEXUS 2025 event revealed seven main pain points in the LP-GP relationship ranging from liquidity and exit challenges through to fees and expenses…. Subscribe to
Tried and trusted approach embraced by LPs Many are expecting a recovery in private credit capital formation in 2025, but it’s the long-established direct lending strategy that’s expected to benefit most. “Higher for longer” interest rates are not good news for everyone – ask placement agents for example. These are the professionals that make their…
Is LatAm worth a second look? It’s one of the most undeveloped private debt regions but demand is there from consumers, SMEs and infrastructure projects. Unlike peers in the US, Latin American institutional investors are under-allocated to alternative assets – but demand is there and so are the opportunities. Challenges, however, include regulation and macroeconomic…
To ESG or not to ESG LPs appear to be sending contradictory messages on the importance of incorporating ESG and sustainability into investment approaches. How seriously should fund managers be taking their sustainability and ESG-related responsibilities? Judging by our LP Perspectives 2025 report, it’s hard to answer that question conclusively…. Subscribe to Read MoreAlready a
Real estate’s dip and fightback The property sector suffered well-publicised difficulties in the wake of covid but investor interest is returning. The real estate debt market has faced a few tumultuous years. The end of the ‘lower-for-longer’ interest rate environment intensified the withdrawal of investors from this corner of the market, which was already wrestling…
LPs still hungry for the asset class Our newly published investor survey reveals some concerns but a lot of support for private credit. Investor confidence in private debt is strong in the early months of 2025. Our LP Perspectives survey – published in full last week – reveals that more than half (57 percent) of LPs want…
Real estate’s silver lining It’s an area of investment that hasn’t had the best headlines in recent times, but debt providers believe there are good opportunities beckoning. Fundraising for real estate debt-focused funds fell 17 percent year on year between 2023 and 2024, according to Private Debt Investor data, with market onlookers citing a lack…