Private Debt Intelligence – 4/3/2023

Investors expect increased opportunities in distressed debt

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There has been a big increase in the proportion of investors seeing distressed debt and special situations as the private debt strategies presenting the best opportunities, according to Preqin’s Investor Outlook: Alternative Assets 2023. While direct lending remains attractive and is likely to continue to be the largest strategy, the proportion of investors viewing distressed debt favourable jumped from 33% in November 2021 to 49% a year later. Interest in the slightly broader special situations strategy was up from 38% to 64%. GPs are looking to capitalize on the interest – and the expected opportunity – with Preqin tracking 85 GPs in the market seeking to raise a total of $66.5bn.

(Past performance is no guarantee of future results.)

Contact: Grant Murgatroyd
grant.murgatroyd@preqin.com