Fri, Jul 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private debt industry shows significant growth potential

Monday, February 25, 2019

Laxman Pai, Opalesque Asia:

Private debt industry as an asset class has matured considerably in recent years, reaching $769bn in assets under management as of the end of June 2018, a report said.

Furthermore, there is still considerable room for growth in the industry: just 25% of institutions currently allocate to private debt, and many of them remain below their target allocations.

According to 2019 Preqin Global Private Debt Report, record buyout deal activity and a potential market downturn could also create plentiful investment opportunities for private debt in the months ahead. But the environment is becoming increasingly challenging, particularly for first-time funds.

Interest rate rises and competition for deals have compressed yields, and investor concern about the market cycle is leading them to prioritize larger managers with established track records.

"Private debt funds are at a crossroads at the start of 2019: on the one hand, the asset class is racking up consecutive successes in fundraising, AUM growth and performance. On the other hand, the indications are the market will only get more unforgiving from hereon in: the industry faces unprecedented competition, and the high returns that have marked historical performance are increasingly difficult to achieve," said Tom Carr, Head of Private Debt.

He added: "The key questions for the asset class then are if it is able to diversify enough to remain attractive to investors, and if it can prove ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from