Private debt keeps it global

Managers with the capability to deploy capital around the globe are rounding up more capital than those focused on a specific geographic area.

Private debt has had global ambitions in 2018; multi-regional funds locked down the plurality of capital so far this year, with credit managers raising $30.37 billion for those types of vehicles, PDI data show.

The mega-funds, which often have a global reach, certainly boost this total. Notably in the first half of 2018, GSO Capital Solutions Fund III raised $7.12 billion, consisting for more than 20 percent of the capital deployable internationally.

Of course, just because a fund can deploy capital in all corners of the world doesn’t guarantee that its manager will do just that. Lone Star Funds has returned to market, seeking $6 billion for Lone Star Fund XI. Despite that vehicle’s global mandate, it will focus on Europe, where the firm sees attractive opportunities, sister publication PERE reported earlier this week.

North America continues to be the weightiest geographic region. Funds targeting this area raised $17.61 billion, compared with Europe’s $11.40 billion and Asia Pacific’s $2.17 billion – although the totals for the latter two are likely to increase substantially. Ares Management surpassed its €4.5 billion ($5.55 billion) for its Ares Capital Europe IV fund on a first close, while SSG, a Hong Kong-based manager that has raised significant sums, is set to return to the market later this year.

Contact: Andrew Hedlund
andrew.h@peimedia.com