The climate change debate heats up Private debt managers have not been at the forefront of ESG in the past but times are changing. When we canvassed the opinions of limited partners about how seriously private debt fund managers take climate change, the responses were not exactly a ringing endorsement. Just 4 percent told our…

Asia Pacific wakes up to private debt From having tentatively dipped their toes into private debt’s waters, investors based in Asia Pacific have been bravely wading in over the last few years. Limited partners based in Korea in particular have found private debt much to their liking, especially funds that are positioned more towards the…

Completing the cycle The global pandemic will give investors more visibility into how private debt performs in tough times. Private debt did not have a great time on the fundraising trail in 2020, as can be seen from our chart above. From the fundraising peak of 2017, the amount raised has declined significantly and last…

Views from the investor frontline Distress, recession and mature markets are all front of mind for LPs keeping the faith in private debt. Our latest study of investors in private debt unearthed the following findings: Distressed and special sits move into focus: As can be seen from the chart above, more than a third of…

All roads lead to North America Private debt has a bias not just to fund managers based in the region but also to those investing in the funds. What was clear from our PDI 50 ranking towards the end of last year was that North America-based fund managers dominate the private debt asset class. Out…

The co-investment conundrum Investors still say there are factors hindering them from participating in co-investment opportunities. Limited partner appetite for co-investment opportunities has dropped to a three-year low as credit investors hold back from doubling up with fund managers. According to Private Debt Investor’s LP Perspectives 2021 Study, fewer than one in four LPs expect…

Fundraising takes a dip The pandemic has taken its toll on fundraising, but the largest managers appear to be benefitting. Unsurprisingly perhaps, private debt fundraising dropped to its lowest level in more than six years during 2020 as the effects of the coronavirus pandemic hit world markets. Preliminary data from PDI’s upcoming Fundraising Report 2020…

The LP view of 2021 Our annual study of investor sentiment finds optimism over future performance and an enthusiasm for distressed debt. Amid all the worry and confusion that has accompanied the global health crisis, it can be difficult to focus on the fundamentals of business – understandably so. But investors in private debt know…

A New Year’s wish: More of the same After a tumultuous year, private debt managers are hoping the strategies that have served them well so far will retain LP support. “Sticking to the knitting” is a phrase beloved of private markets fund managers. What it’s meant to convey is that, when chaos is all around…

There may be trouble ahead Investors have taken comfort from private debt’s response to the crisis, but economic turmoil still lies in wait. There are certainly some very different views in the market as to how quickly the next wave of distressed opportunity is likely to materialise. As we have reported previously in Lead Left,…