Private Debt Intelligence – 10/12/2020

Direct Lending and mezzanine strategies gathered most of the capital in Q3 2020

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In Q3 2020, private debt fund managers were able to secure $8.4bn by 20 funds closed. What fund types stood out? Direct lending and mezzanine strategies secured the bulk of capital, raising $3.8bn and $2.6bn respectively. Many investors were positioning themselves more defensively during Q3 but some others were looking to take advantage of the dislocation COVID-19 is causing many firms. Special situations strategies secured $1bn in capital with five funds closed and distressed strategies gathered $1bn in fresh capital by just one fund, the Varde Dislocation Fund.

Also, something to point out is that during Q3, almost all private debt funds closed were focused on the North American market – 15 of the total 20 vehicles were North America-focused funds, accounting for 97% of the total capital secured. The rest of the funds closed in the quarter were focused on the Asian market and, in fact, no Europe-focused funds reached a final close.

Contact: Maria Zapata
maria.zapata@preqin.com