Private Debt Intelligence – 4/5/2021

Private Debt: Risk/Return by Fund Type

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Across private debt strategies, returns and return dispersion data varies greatly. Direct lending funds, which are characterized by more senior secured debt, have been a steady investment, with a median net IRR of 8.3% for vintages 2008-2017 and a standard deviation of only 5.0%. Distressed and special situations funds offer investors a higher return in exchange for greater risk. Mezzanine funds shows the highest return of all strategies with only a small increase in variance over direct lending.

(Past performance is no guarantee of future results.)
Contact: Ashish Chauhan
ashish.chauhan@preqin.com