Private Debt Intelligence – 11/16/2020

Fund Manager Views on the Importance of
Debt Lenders in the Next Five Years

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Private debt firms have stepped into a gap left by banks after the Global Financial Crisis and are focused on lower-risk credits. More than 30% of fund managers surveyed by Preqin for Future of Alternatives 2025 believe banks will be less or significantly less important as debt lenders over the next five years, compared to a quarter that expect them to be more important. The majority (62%) of fund managers believe that private debt funds will be more or significantly more important over the next five years, with just 4% saying they will be less important. Nearly half (47%) of respondents also think capital markets will be a more important source of debt finance. Likewise, more than a half (53%) of fund managers consider that institutional investors will gain more importance over the next five years.

Contact: Maria Zapata
maria.zapata@preqin.com