Arguments for the middle way A new report examines themes in the mid-market and finds optimism growing as investors seek to diversify. It has undeniably been a challenging few years for small and medium-sized businesses. But are the tides starting to turn? Recent data suggests earnings of mid-market firms are consistent with a consensus that…
The challenges of technology Private debt firms may need to make cutting-edge processes a higher priority. When talking about what makes their business tick, private markets managers are usually keen to emphasise their focus on building relationships, on skilled teams of staff and expertise in chosen verticals. While these are no doubt crucial to building…
Europe’s hot topics This week, we reflect on a few of the talking points from PDI’s recent Europe Summit 2024 in London. Are favoured sectors still good value?One panellist said the gradual retreat of covid brought with it the end of the honeymoon period for technology and life sciences, two sectors that had previously exploded…
Fundraising falls flat There’s been talk of a modest revival in capital raising this year, but the first quarter may have lowered expectations. After a difficult time on the fundraising trail in 2023 as limited partners suffered from the denominator effect and lack of distributions, private debt managers were looking forward to a more benign…
LPs keen to address under-allocations The latest version of PDI’s Investor Report shows many investors have a long way to go to reach target exposures in private debt – but the intent is there. Private debt, along with other alternative asset classes, found last year to be a tough one on the fundraising trail –…
The investor view from Asia The need for income and the attractive risk/return profile of senior strategies are among the reasons why private debt is popular among LPs based in APAC. Private Debt Investor’s recent APAC Forum in Singapore featured many views and insights from leading investors in the region. As our chart shows, appetite…
The rise of quasi-distress As fund managers become adept at heading off problems before they threaten to kill companies off, distressed strategies are changing in nature. The news in August last year that Oaktree Capital Management was in the market with an ambitious $18 billion target for its latest opportunistic credit fund highlights the burgeoning…
Is stress emerging to save Asian fundraising? Last year was tough for GPs seeking capital to invest in Asia Pacific but distressed/opportunistic strategies were bucking the trend. Fundraising for private credit in Asia Pacific took a nasty hit in 2023, with just 11 funds reaching the finish line, compared with 33 the year before. The…
Volatile times, but no distressed boom Capital raising for distressed and special situations strategies has remained at modest levels since hitting a peak in 2019. Fundraising for distressed and special situations strategies has remained remarkably consistent, even as the long-term effects of the covid pandemic, rising inflation, war in eastern Europe and the continuing fear…
LPs follow the pack Our research indicates investors are keeping faith with mainstream strategies – at least for now. Conservatism appears to be the driving force for many investors in private debt, our LP Perspectives 2024 Study suggests. When it comes to fund strategy, direct lending has long been the most favoured option for investors…