The hidden attraction of distress They may not be raking in fresh capital right now, but distressed debt managers have plenty of firepower to take advantage of current conditions. In last week’s Lead Left column, we noted that the proportion of fundraising by strategy in the first three months of this year was more or…

Fundraising in the time of coronavirus Private debt funds are finding it tough to raise capital, but this was true before the virus struck. In the face of the coronavirus pandemic and the enormous disruption it has produced in its wake, little surprise that private debt fundraising appears to be in decline…. Subscribe to Read

How LP views of private equity are being shaped by covid-19 Fewer but more open-minded commitments may be among LPs’ responses to the crisis, according to our new survey. The covid-19 outbreak has thrown the pieces of the puzzle in the air and, as yet, we don’t know exactly how those pieces will land. But…

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…. Subscribe

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’…. Subscribe to

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…