Private Debt Remains Popular for Investors Private debt has seen great success in attracting investors, and as at H2 2018 over a third (36%) of institutional investors allocate capital to the asset class, according to Preqin’s latest survey of institutional investors. Investors cite portfolio diversification as the main reason to invest in private debt, alongside…

Distressed Debt Outperforms Other Private Debt Strategies The private debt industry has historically been dominated by three main strategies: direct lending, distressed debt and mezzanine, which collectively account for around four-fifths of private debt assets under management. Median returns for these strategies, and for private debt overall, have been strong, and returns have consistently hovered…

Largest Private Debt Fund Managers Dominate Industry The private debt industry has grown exponentially over the past decade, holding more than $650bn in assets as of the end of 2017. However, as with other private capital asset classes, the industry is seeing an increasing amount of capital being concentrated among a small number of the…

Private Debt Assets under Management Break New Records Preqin finds that private debt assets under management have risen for the third consecutive year, reaching a record $667bn at the end of 2017. This represents a 13% increase from December 2016 when private debt assets under management had yet to hit the $600bn mark. Private debt…

Distressed Debt Sees Strong Performance Distressed debt has seen strong success, particularly in Q2 2018: the strategy led private debt fundraising during the quarter and the majority (60%) of investors tracked by Preqin are planning to seek out distressed debt vehicles over the next 12 months. The fund type has also seen favourable returns, even…

Investors Take Notice of Distressed Debt Preqin currently tracks more than 3,300 private debt investors globally. The majority (55%) of these investors are based in North America. A further 25% are based in Europe and 14% are based in the Asia-Pacific region. The 10 largest investors allocate a total of $66bn to the private debt…

Private Debt: Distressed Debt Dominates Q2 2018 In Q2 2018, 22 private debt funds held a final close, securing a total of $25bn in capital. Although this marks a significant decrease from the 33 private debt vehicles which held a final closure in Q1 2018, Q2 saw an increase of over $5.0bn in capital raised….

Investors Flock to US Lower-Middle-Market Private Debt A Preqin/NXT Capital survey of 78 institutional investors investing in private debt found that 45% believe that the private debt market is at a peak and that assets are overvalued, leading investors to believe that the coming months will see a correction. In response, investors are looking increasingly…

North America-Focused Mezzanine Fundraising: Off to a Strong Start As at May 2018, seven North America-focused mezzanine funds have held a final close, securing a total $4.1bn in capital. These fundraising levels put 2018 on path to exceed 2017 activity: in 2017, 17 North America-focused mezzanine funds closed and raised an aggregate $5.2bn. This represented…