Private Debt Intelligence – 9/13/2021
Dry powder levels indicate healthy competition in PD
Chart
Download Data
[wpdm_package id=’48369′]
Levels of dry powder in private debt have reached 35% across five main strategies (direct lending, distressed debt, mezzanine, special situations and venture debt) in Q2 2021, with funds sitting on $364bn. This indicates that, based on a three-year fundraising cycle, capital raised is in balance with the market opportunity. Direct lending and distressed debt hold respectively 36% ($148bn) and 38% ($102bn) of their AUM as dry powder, while venture debt, in comparison, decreases the average with dry powder at just 23% of its AUM, or $5bn. However, with a record number of funds in market competition is set to increase.
(Past performance is no guarantee of future results.)
Contact: Laura Messchendorp
laura.messchendorp@preqin.com
Latest news
Software, consumer-related direct lending deals fell in H1'26
The software and technology sector, the second-most-active sector in 2025 at 17% of total deal activity, slid to fifth place in the first half of 2026.
Unconquered Territory
With most of the map still unexplored, there’s room for a sequel.