Private Debt Intelligence – 3/11/2024
LPs target private debt for reliable income streams
Chart
Download Data
[wpdm_package id=’68982′]
Private debt investments provide LPs with reliable income streams through contractual repayments, which are particularly attractive in an uncertain macroeconomic environment. Portfolio diversification and high-risk adjusted returns were the second most common reasons cited by investors surveyed by Preqin for allocating to private debt.
Whilst LPs do not look to the asset class for high absolute returns, the world’s largest listed alternatives managers, who provide the earliest insight into private markets performance, delivered double digit returns from private debt in 2023. The returns were higher than those the same managers delivered from private equity.
For more, read Preqin’s Insights+ Report: Strategy in Focus: Real Assets Debt.
Contact: William.Bennett-Lynch
William.Bennett-Lynch@preqin.com
Latest news
The Recovery Shot
Trouble off the tee doesn’t always translate to trouble on the scorecard.
Q2'26 BDC analysis shows additional 184 bps of nonaccruals at cost
In a universe of 173 business development companies, or BDCs, Octus identified a total of $9.5 billion of debt (at cost) in nonaccrual status reported in the second quarter of 2026, a slight decline of 5% from $10 billion in the first quarter of 2026.
Private Credit Defaults 101: Scrambling for Par
Seve Ballesteros won four majors in the 1980s despite being, by his own admission, one of the wildest drivers of the golf ball on tour.