Fundraising’s tale of two halves Looking back over the last decade reveals a phase of uninterrupted capital growth, followed by a less predictable period. Since Private Debt Investor launched a decade ago, we have closely tracked fundraising for the asset class across its evolving array of strategies. We have witnessed the meteoric rise of an…
UK dislodged from Europe’s top spot France saw a surge of deals in the second half of last year, but the UK should not be written off prematurely. The Deloitte Private Debt Deal Tracker for the second half of last year caused something of a stir when it positioned France ahead of the UK for…
When the going gets tough Those present at the PDI Europe Summit heard how Europe is catching up the US when it comes to distressed opportunities. Despite the denominator effect, more investor capital is expected to pour into distressed and special situation-focused GPs’ coffers this year (see chart). No wonder the room was packed as…
Europe’s pros and cons Private Debt Investor’s Europe Summit 2023 in London last week reflected on the state of play in the region. Here are five key observations. 1. Increasing moves by private credit firms into net asset value-based financing are in keeping with the growing recognition that private credit is the natural supporter of…
Subordinated debt bucks fundraising trend The strategy appears to be claiming market share as fundraising shows signs of coming under pressure. Largely as a result of the denominator effect, but also due to investors taking stock of a challenging economic and geopolitical situation, it was always feared that 2023 might turn out to be a…
Lenders must rise to the ESG challenge From being seen as non-participants, debt providers are these days seen as having a crucial role to play in driving responsible borrower behaviour. Long gone are the days when lenders were considered backseat drivers, with little to add to the debate on how borrowers should be engaging with…
Appetite grows Our LP Perspectives study found record numbers of LPs are committing capital to secondaries funds in private debt. Private credit secondaries are coming of age in 2023, with more limited partners planning to commit capital to secondaries funds in private debt than ever before, and more planning to buy and sell stakes in…
The return of distressed debt Special situations are emerging as a key fund focus in the 2023 mid-market, as managers respond to growing signs of distress driven by macroeconomic conditions. Interviewed for our PDI Mid-Market Lending Report 2023, Ed Testerman, a partner at New York-based fund manager King Street Capital Management, told us there are…
Direct lending on the rise in Asia-Pacific The strategy is outshining distressed debt in the region, but fundraising for all types of private debt may be more challenging over the next year. Last week saw the Fairmont Singapore play host to our 2023 APAC Forum, with a record number of delegates keen to discuss the…
US pensions dig deep We present some of the key findings from our Investor Report for 2022. US-based public pensions were among the largest allocators to private debt during 2022, though their publicly available data made it much easier to find commitment data for these institutions, making up 13 of the top 15 LPs in…