The mightier they are, the harder they fall Private debt hit a fundraising peak in 2017, which has proved impossible to sustain. It was the year when private debt came of age as an asset class, shattering the previous global aggregate fundraising total as GPs raked in a combined $211 billion according to PDI figures.
Why private credit firms and their LPs should make ESG a priority Environmental, social and governance policies provide another avenue of differentiation when all debt managers claim to have proprietary dealflow and the best downside protection....
Today’s deal structuring affects private debt’s future Cov-lite, cov-wide or cov-regular, credit managers are making the bed they’ll have to lie in. The private debt deal market is red hot: there is cash aplenty, more lenders than there are deals, egregious EBITDA addbacks – and investors are taking note....
The evolution of the GP-LP relationship in private credit The asset class has grown a lot in some ways over this credit cycle, but still has a way to go. Next to a general partner’s boast about the width of their deal funnel and underwriting skills is the strength of their relationships with investors. This
Direct lending is popular – and thus bucks the trend A new survey shows the strategy retaining a strong level of demand, while other areas of private debt lose their allure. They still can’t get enough. Ever since the global financial crisis, the theme of direct lending has gathered pace – and also gathered increasing
Opening the books to investors In a survey from sister publication pfm, the number of managers trying “very hard” not to disclose a deficiency uncovered via a routine exam by regulators increased by 7%. Perhaps the only thing worse than a realised credit loss for alternative lenders is when the Securities and Exchange Commission comes
Credit managers should embrace transparency Fund transparency should become a key part of the asset class as it continues its maturation. It’s no secret alternative assets are among the most expensive investment strategies. Of course, private credit, private equity and the like require a much more staffing-intensive effort than passive investment vehicles may need, and
First-closing fee discounts can set GPs apart A surprising number of private markets managers don’t offer a break to their funds’ earliest investors. Private fund managers seem reticent to offer early-bird management fee discounts, according to two new surveys, closing a potential avenue to differentiate themselves as fundraising slows down. Private Debt Investor sister publication
Turning a blind eye? In Europe, talk of battening down the hatches for a change in circumstances seems at odds with a lack of appetite for European distressed strategies. “The more you sweat in peacetime, the less you bleed during war.” Turnaround specialist Richard Thomson of RLT Advisory reached for this striking Chinese proverb when
The growing gap between private credit’s haves and have-nots The top 10 firms have made up half of the capital collected over the past five years. The largest alternative lenders keep raising more money, according to PDI data. Examining the data collected for the PDI 50 – our ranking of the largest fundraisers over the