Patience needed for next NPL wave No-one should expect a sudden 2008-style surge, but economic headwinds are expected to eventually translate to a promising opportunity set. Non-performing loans have been one of the hottest topics in the private debt space ever since the 2008 financial crisis led to an unprecedented movement of bad debts off…

The future is artificial A survey in our Future of Private Debt report 2023 reveals where AI is having an impact in the private funds industry. Nearly one-third of GPs identify due diligence and data analysis as the business areas in which artificial intelligence will have the greatest impact over the next five years, according…

Fundraising down, but hopes are up Private debt looks well placed to prosper, despite what has been a difficult period for investors. Three years ago, Private Debt Investor launched a cross-asset class survey called the Fund Leaders Survey comprised of more than 100 senior buyout, growth, private debt, venture capital, real estate and infrastructure executives….

What matters in the US Our recent US Report highlighted five key themes in the world’s largest private credit market. 1. Fundraising has slowed to a seven-year low: The latest Private Debt Investor fundraising data shows just 84 credit funds raised globally in the first half of 2023 (see chart). This was the lowest number…

Is it really a golden age? Private credit has received plenty of acclaim as a well-positioned asset class for the times, but investors are not entirely void of concerns. Private debt GPs, in common with GPs across all private markets, found fundraising to be a challenging task in the first half of 2023. Our data…

Taking your PIK The influence of the payment-in-kind option in private debt transactions is on the rise. There was a time when a company seeking a payment-in-kind (PIK) option was a surefire sign of trouble. Think of the credit bubble that led to the global financial crisis…. Subscribe to Read MoreAlready a member? Log in

Infrastructure seeks to weather the storm When the economy turns, infrastructure investment has often been seen as a safe harbour from tailwinds affecting other parts of the market. Infrastructure projects are typically long-term investments with government support, usually fulfilling essential needs which consumers cannot easily cut out of their budgets…. Subscribe to Read MoreAlready a

Investors flock to the middle As previously highlighted by Lead Left, and supported by our fundraising data, junior capital strategies are becoming increasingly popular. In last week’s version of the “Case for Junior Capital”, Lead Left drew attention to some of the positive characteristics of this type of investment in today’s environment including healthy cash/equity…

Fundraising: Down but not out Capital raising has proved a tough task so far this year, but investor support may be about to return. On the face of it, the fundraising market for private debt looks rather gloomy. In common with similar findings across the alternative asset universe, the private debt market saw a marked…

Are the storm clouds receding? Private debt may be in the process of demonstrating its resilience in the face of the latest challenges. One thing that studies consistently show – including our own Perspectives survey, see chart above – is that investors are still scrambling to access private debt. Tough times we may be living…