PDI Picks – 9/10/2018

Mezzanine debt is subordinate no more


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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 from the limelight as mezzanine debt takes center stage.

Some 197 mezzanine debt funds are in market seeking $92.03 billion, and if investors want to round out their exposure to private credit investment options, the strategy might not be a bad choice.