Chasing special returns A poll asked our New York Forum audience to name the most promising strategy over the next year. It produced an interesting answer. “Predicting the end of the cycle is very difficult, if not impossible.” So said Cliffwater CEO Stephen Nesbitt in his introductory remarks as day one chair of our New…
Hiding the target Many fund managers are now not revealing how much their vehicle is hoping to raise. Managers may be becoming more secretive as the private credit pool has proliferated, as many now do not reveal fund targets, according to PDI data. A full 30 percent of funds in market have not disclosed their…
More debt funds in market, more questions for investors A large number of vehicles are seeking capital, and fundraising has been strong – but that isn’t a guarantee the boom times will continue. The number of private credit funds in market has been on a steady upward trend, according to PDI data, reflecting the enduring…
Mezzanine debt is subordinate no more After a dip in mezzanine fundraising in 2017, credit managers are hoping limited partner demand for the strategy is strong in 2018 with almost 200 funds in market. Senior debt and distressed debt have been the favoured investment choices for limited partners recently, but those strategies may be fading…
Owning up to Europe’s distressed opportunity Under increasing pressure, banks are starting to offload troubled assets – with Italy leading the way. Like a small child who keeps a broken toy in a clenched fist to hide it from a parent, many European banks have been reluctant to own up to the true value of…
Real estate debt: a blossoming American tradition Investment opportunities for the sector in the US appear to remain strong. Real estate debt fundraising by region – where a firm plans to deploy capital rather than where the vehicle’s investors are – has fluctuated over the past four years, but one constant has been the rise…
Emerging markets are on the rise for private debt Much of the activity has been in India, one market source told PDI, where distressed debt has been attractive as a result of new bankruptcy rules. Private debt targeting emerging markets has been trending upward in recent years, and 2018’s total may be poised to surpass…
A private debt fundraising hangover The steep decrease in H1 2018 may just be a function of the incredible amount of capital alternative lenders collected last year. Private debt managers are seeking the least amount of capital six months into the year since 2015, a fact that could be reflective of the broader fundraising market…
LPs going on the defensive Senior debt continues to be popular even as many investors have fleshed out their private credit exposure via their handful of favourite direct lenders. The proportion of senior debt capital raised in the first six months of 2018 hit a four-year high, according to PDI data, signifying a greater willingness…
US-based managers dominate fundraising Many of the behemoth alternative asset managers are based in America and have raised some of the largest funds this year. For all that’s said about the rise of private debt in Europe and Asia, managers headquartered in the US ruled fundraising in the first six months of the year, according…