US private debt fundraising reaches US$33bn so far this quarter

Private debt fundraising has continued at a consistent pace so far in 2024. LSEG LPC has tracked over US$33bn in US direct lending middle market capital raised this quarter. That number includes US$7.2bn of middle market CLO new issuance in January and February. Last year, there was US$128bn of direct lending capital raised, 13% lower year-over-year. Up to this point in the economic cycle, direct lender portfolios have held up well despite the higher interest rate environment. The non-accrual rate for BDCs that have filed their year-end reports is only 2.21%. According to lenders, investors have not been deterred by direct lending portfolio performance, but rather have had a harder time allocating to the asset class due to the denominator effect.