LPs expecting lower private debt returns in 2020 The asset class has experienced intense competition over the years, and that might be starting to show up in LPs’ return expectations. Investors broadly expect to enjoy solid private debt returns next year, with 78 percent anticipating returns at or above their benchmarks, according to our annual…
Direct lending reigns supreme despite risks A plurality of LPs plan on committing more to the strategy than any other credit product, our annual investor poll found. More covenant headroom, wider credit spreads and a mountain of capital: that’s how LPs view not just for the upper mid-market or the broadly syndicated market, but all…
North America’s dominance shows in 15 largest global investors The biggest backers of the asset class generally reside in the world’s largest and most sophisticated alternative credit market. The top half of our inaugural Global Investor 30 rankings shows a worldwide embrace of the asset class, though there is a bias towards North America…. Subscribe
Distressed debt fundraising figures no longer distressing Despite subpar returns from many such funds, the strategy continues to attract LP dollars. Distressed debt has continued its strong fundraising, with a total of $39.44 billion, or 35 percent, of the $112.69 billion that private credit funds have raised through the first three quarters of the year,…
Multi-regional funds hold their own in chase for capital In 2019, so far, capital pools investing in more than one global region have raised more than in 2018. Multi-regional funds – those investing across more than one geographic area – have made a comeback this year, or at least risen back in line to prior…
Another sign that the big are only getting bigger The baseline for being in the top-10 fundraises of the year increased from 2018 to 2019, signaling the growing dominance of a few firms. The overall capital collected by the top-10 fund closes this year has eclipsed the total raised by last year’s 10 largest fundraises,…
Q3 fundraising holds up though number of funds closed falls 2017’s massive total of $239bn appears to be more of an aberration than a new norm. Fundraising activity in the third quarter of this year is set to match 2018 levels as appetite for the asset class holds steady. Preliminary figures for the PDI Q3…
Asian credit fundraising is a drag A dip in H1 2019 private debt fundraising numbers doesn’t mean the year’s total will finish less than prior years, as the second half of the year is typically stronger than the first. Capital raising in the Asia-Pacific region has lagged in the first half of the year, pulling…
A drop in fund closings portends more capital in fewer hands Yet another data point is emerging to showcase how fewer managers are raising an outsized amount of the capital LPs are allocating to the asset class. One of the most prominent trends in private credit today has been that of consolidation. It’s often used…
North America ascendant in rat race for capital Many smaller private debt funds may be targeting the continent, but that is at odds with the trend toward more capital in the hands of fewer managers. North America may be rising in private credit fundraising – funds targeting the continent are seeking $116.6 billion. Funds investing…