Opalesque Industry Update - Private debt fund managers are currently sitting on a record $185bn in dry powder, capital commitments from
investors that are yet to be invested. Fund managers are
keen to invest this capital in attractive investment
opportunities, as 66% of respondents to a recent Preqin survey of over 100 private debt
fund managers indicated they
plan to deploy more capital over the next 12 months. Yet managers face intense competition from their peers over half of survey respondents (51%) noted
that they felt competition for investments had increased over the past 12
months, and a third claimed it was harder to find attractive opportunities
in the current market. Other Key Private Debt Industry Facts:
Comment: The private debt industry has witnessed tremendous growth in recent years, and fund managers are now sitting on a record level of dry powder. Preqin has recently surveyed over 100 private debt fund managers to gauge their outlook for the coming year. This has shown that fund managers in tend to deploy a lot more capital over the next 12 months, but over half feel that competition for investment opportunities is higher t han a year ago. Furthermore, a third of respondents stated that they were finding it harder to identify attractive investm ent opportunities in the current market. Although fundraising levels are buoyant for the private debt industry, fund managers will be keen to demonstrate they can put capital to work to ensure they can conti nue to attract future commitments from investors. Ryan Flanders Head of Private Debt Products, Preqin |
Industry Updates
Private debt fund managers face intense competition to deploy record levels of dry powder
Friday, August 07, 2015
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