Views from the investor frontline Distress, recession and mature markets are all front of mind for LPs keeping the faith in private debt. Our latest study of investors in private debt unearthed the following findings: Distressed and special sits move into focus: As can be seen from the chart above, more than a third of…

All roads lead to North America Private debt has a bias not just to fund managers based in the region but also to those investing in the funds. What was clear from our PDI 50 ranking towards the end of last year was that North America-based fund managers dominate the private debt asset class. Out…

The co-investment conundrum Investors still say there are factors hindering them from participating in co-investment opportunities. Limited partner appetite for co-investment opportunities has dropped to a three-year low as credit investors hold back from doubling up with fund managers. According to Private Debt Investor’s LP Perspectives 2021 Study, fewer than one in four LPs expect…

Fundraising takes a dip The pandemic has taken its toll on fundraising, but the largest managers appear to be benefitting. Unsurprisingly perhaps, private debt fundraising dropped to its lowest level in more than six years during 2020 as the effects of the coronavirus pandemic hit world markets. Preliminary data from PDI’s upcoming Fundraising Report 2020…

The LP view of 2021 Our annual study of investor sentiment finds optimism over future performance and an enthusiasm for distressed debt. Amid all the worry and confusion that has accompanied the global health crisis, it can be difficult to focus on the fundamentals of business – understandably so. But investors in private debt know…

A New Year’s wish: More of the same After a tumultuous year, private debt managers are hoping the strategies that have served them well so far will retain LP support. “Sticking to the knitting” is a phrase beloved of private markets fund managers. What it’s meant to convey is that, when chaos is all around…

There may be trouble ahead Investors have taken comfort from private debt’s response to the crisis, but economic turmoil still lies in wait. There are certainly some very different views in the market as to how quickly the next wave of distressed opportunity is likely to materialise. As we have reported previously in Lead Left,…

Breaking the covenant Two recent surveys have shed light on the issue of covenant breaches, and how managers are responding to them. With the number of covenants in deals having declined markedly in recent years, there has been some doubt as to whether even a sharp downturn would be accompanied by a significant rise in…

The pain is yet to come Plenty of capital has been raised in anticipation of a distressed opportunity that may take a while to materialise. Distressed debt has been a major focus for investors in recent years, as can be seen from our chart above. Although fundraising this year has been dealt a setback by…

Are the clouds beginning to lift? The deal market is showing signs of picking up, as positive news on a covid-19 vaccine brings hope even to the worst-hit sectors. Speaking to sources in the private debt market has been a surprisingly uplifting experience recently. Following many predictions of doom and gloom in the spring of…