Real estate debt fundraising is a real downer The strategy had a strong run for several years, but that spurt could be over. Real estate debt seemed to be enjoying its moment in the sun – the strategy has risen annually since 2014, and in 2017, it shot up by almost $13 billion. But it…
Underwriting’s influence on track record GPs’ documentation practices play an outsized role in private credit, and LPs should know whether they’re doing it well. Limited partners put an almost unanimous emphasis on a potential general partner’s track record, with 97.6 percent of respondents in our annual PDI Perspectives 2019 investor survey saying it forms a…
Investors want more info on fees LPs said they often have a hard time justifying them within their organisations. More than half of investors in the past 12 months have asked for greater fee transparency and disclosure from their general partners, according to PDI Perspectives 2019, our annual survey of limited partners…. Subscribe to Read
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…. Subscribe to Read MoreAlready a member? Log in here...
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…. Subscribe to Read MoreAlready a member?
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…