India overtakes China in private debt AUM Read more in Preqin’s Insights+ Report: Alternatives in APAC 2024 Private debt in APAC has nearly doubled in the five years leading to September 2023. growing from $62.5bn in AUM to $123.5bn…. Subscribe to Read MoreAlready a member? Log in here...

Mega funds exert dominance in US buyouts Read Preqin’s ‘Buyouts in North America: A Preqin Primer‘. The average size of US-focused buyout funds more than doubled from 2021 to 2023 to $750.7mn (aggregate $95.3bn), driven by a big increase in the very largest funds, according to Preqin data…. Subscribe to Read MoreAlready a member? Log

Distressed debt leads Preqin’s performance forecasts Preqin forecasts that returns from private debt will remain steady up to 2028 at 9.8% per annum (a drop of just 0.1% from the 2019-2022 period). Direct lending returns are forecast to drop to 7.3% for 2022-2028, down from 8.6% for 2019-2022, reflecting a focus on more conservative loans…

Is an IPO revival in the pipeline? The IPO market ran cold in 2023 as high global interest rates, continued volatility, and poor after-market performance led companies to hold off, and wait for a more stable macroeconomic climate…. Subscribe to Read MoreAlready a member? Log in here...

Direct lending dominates first quarter fundraising Demand for direct lending strategies has increased consistently over the past 15 years, as private credit has evolved from niche products such as mezzanine and distressed debt to a mainstream source of finance for deals and companies…. Subscribe to Read MoreAlready a member? Log in here...

The relative attractiveness of alternative asset classes has shifted significantly over the past few years as interest rates have risen and the economy become much less certain…. Subscribe to Read MoreAlready a member? Log in here...

Family offices warm to Infrastructure, private debt, and hedge funds Private equity is the main alternative asset class for family offices, with 58% of those tracked by Preqin active in the strategy, ahead of real estate (46%). However, while just 21% of family offices are active in hedge funds and private debt and 20% in…

North American-based private debt AUM hits $1tn Private debt in North America has overtaken real estate in 2023 to become the second largest private capital asset class by assets under management (AUM), topping $1tn for the first time. AUM grew 18% in H1 2023, faster than private equity (13%), and private capital markets overall (11%)….

LPs target private debt for reliable income streams 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…. Subscribe to Read

Fundraising concentration remains stable amid 2023’s challenging market conditions Despite a difficult 2023, fundraising concentration in private capital markets has remained level for funds and managers in the four years since 2019. Using a Gini co-efficient to demonstrate the distribution of capital across funds shows that fundraising concentration is increasing long-term…. Subscribe to Read MoreAlready