Private Debt Intelligence – 1/24/2022

Private debt funds positioned for busier year

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Aggregate private debt deal value declined 31% in 2021 after a record year in 2020. The differing rates of decline in the sub-strategies are an indication of managers’ risk appetites and deal availability. Senior tranche lending saw annual deal values and volumes down 28%, and in the riskier yet higher-yielding strategy of junior/subordinated debt, deal value declined 21%. The ending of government stimulus is likely to lead to demand for debt finance, while high levels of dry powder points to increasing activity across the risk spectrum.

(Past performance is no guarantee of future results.)

Contact: Valerie Kor
valerie.kor@preqin.com