Wed, Nov 20, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fundraising for the once-hot asset class private debt is cooling down

Friday, October 11, 2019

Laxman Pai, Opalesque Asia:

Once-booming asset class private debt funds secured just $22.1 billion, in the third quarter of 2019, the lowest quarterly haul since the first three months of 2018.

The $22.1 billion fundraise for that quarter followed 2017's blockbuster fourth quarter, which recorded $54.4 billion in capital commitments.

According to a new report from data provider Preqin, this time the quarter's fundraising stats are the continuation of an ongoing decline for the asset class.

However, as per a clear cyclical pattern whereby totals generally peak in Q4 of each year, and so 2019 totals may yet rise significantly.

Punctuating the poor fundraising performance this quarter, only a single fund type raised a meaningful amount of capital.

Usually the strongest performer in the asset class, direct lending funds accounted for 90% ($20bn) of all capital raised in Q3; the $49bn raised so far this year leaves them within reach of surpassing 2017's peak.

In the remainder of the asset class, only the mezzanine fund type has closed more than a single fund, and only mezzanine and special situations hit the $1bn mark in fundraising.

Europe-focused private debt funds bounced back in Q3

Europe-focused funds bounced back strong from a disappointing Q2, outpacing all other locations with $14bn raised.

In contrast, North America focused funds secured $6.5bn, almost half of their Q2 total, while Asia-focused funds held stable and in the rest ......................

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. HarbourVest raises $3bn for Co-Investment Fund V[more]

    Laxman Pai, Opalesque Asia: Boston-based HarbourVest Partners closed its latest private equity fund above the fundraising target - the $3 billion HarbourVest Partners Co-Investment Fund V was oversubscribed and above its $2.5 billion target. The fund's strategy is to create a global, diversif

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption