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Laxman Pai, Opalesque Asia: Assets under management (AUM) in private debt, the youngest asset class in the private capital universe, have grown consistently each year and, as of June 2019, reached a record of $812bn.
Private debt is now the third-largest asset class in private capital, ahead of infrastructure and natural resources, says the latest report by Preqin.
The AUM of $812bn in June 2019 translates into an increase of 8% in just six months, it said.
Moreover, the asset class is diversifying away from its traditional strongholds. Where traditionally North America has been the hub of private debt investment, Asia-focused private debt grew substantially in 2019 - fundraising increased to $8.4bn, and it has doubled in size over the last five years in terms of AUM.
Ashish Chauhan, Executive Editor - 2020 Preqin Global Private Debt Report said: "The private debt industry is maturing as it continues to expand. Although 2019 was a difficult year for fund managers to close funds, the asset class has not stopped growing."
Ashish added: "In 2018, we predicted that private debt would reach $1.4tn by the end of 2023, and the industry is well on course to meet that target. Larger funds keep coming to the market which means that capital concentration will intensify. But new regions are standing out - we have seen remarkable growth in Asia. We believe more opportunities will present themselves in the region as the asset class continues to grow in prom...................... To view our full article Click here
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