Private debt is expanding despite its competitiveness PDI data show almost twice the number of investors this year are set to expand their GP relationships than decrease them. Many limited partners have already set their private debt investment pacing plan for the year and, pending their fiscal year, may be getting ready to decide another…

The Goldilocks of capital deployment Despite heated discussion around perceived recklessness, most LPs are satisfied with how GPs have managed their capital. Much has been made of the large number of covenant-lite loans, cases of egregious EBITDA addbacks and other such exuberant late-cycle activity…. Subscribe to Read MoreAlready a member? Log in here...

The rise of the few in Europe In 2018, three European mega-funds raised more than one out of every three dollars focused on the region. A dominant theme in recent headlines has been concentrated wealth in the hands of the very few – and I’m not talking about income status. I’m talking about private credit….

Pedal off the metal Fundraising tumbled in 2018, in part explained by an unwillingness to add to the stockpile of capital dedicated to distress. Rather like Superbowl LIII, private debt fundraising in 2018 was intriguing but unspectacular. Compared with the record-breaking $211 billion collected globally in 2017, a rather more humdrum figure of $135 billion…

Real estate debt fundraising is a real downer The strategy had a strong run for several years, but that spurt could be over. Real estate debt seemed to be enjoying its moment in the sun – the strategy has risen annually since 2014, and in 2017, it shot up by almost $13 billion. But it…

Underwriting’s influence on track record GPs’ documentation practices play an outsized role in private credit, and LPs should know whether they’re doing it well. Limited partners put an almost unanimous emphasis on a potential general partner’s track record, with 97.6 percent of respondents in our annual PDI Perspectives 2019 investor survey saying it forms a…

Investors want more info on fees LPs said they often have a hard time justifying them within their organisations. More than half of investors in the past 12 months have asked for greater fee transparency and disclosure from their general partners, according to PDI Perspectives 2019, our annual survey of limited partners…. Subscribe to Read

The mightier they are, the harder they fall Private debt hit a fundraising peak in 2017, which has proved impossible to sustain. It was the year when private debt came of age as an asset class, shattering the previous global aggregate fundraising total as GPs raked in a combined $211 billion according to PDI figures….

Why private credit firms and their LPs should make ESG a priority Environmental, social and governance policies provide another avenue of differentiation when all debt managers claim to have proprietary dealflow and the best downside protection…. Subscribe to Read MoreAlready a member? Log in here...

Today’s deal structuring affects private debt’s future Cov-lite, cov-wide or cov-regular, credit managers are making the bed they’ll have to lie in. The private debt deal market is red hot: there is cash aplenty, more lenders than there are deals, egregious EBITDA addbacks – and investors are taking note…. Subscribe to Read MoreAlready a member?