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Laxman Pai, Opalesque Asia: The private debt industry has seen some improvements in the second quarter of 2020 after a slow start of the year, said Preqin.
According to the report, a total of $34bn was raised in Q2 from 49 private debt funds closed, which compares with 36 funds that secured $22bn in the first quarter of 2020.
Special situations and distressed debt accounted for the bulk of capital raised. Five special situations funds raised $12bn in the quarter, while distressed debt funds secured $9.7bn through nine fund closures.
Managers are competing to raise further capital from investors in the months ahead: there are now a record-high 486 funds on the road, seeking $239bn in aggregate capital, at the start of July. "This is a record high for both the number of funds and their total targets," the report added. They may receive a warm reception from investors seeking to take advantage of counter-cyclical opportunities.
Allocators are generally looking to commit to just one private debt fund in the next 12 months, but the total capital they plan to commit is higher than it was at the same time in 2019.
The report pointed out that the proportion of investors planning to allocate to more than one private debt fund over the next 12 months is down to 33% in Q2 2020. That said, in Q2 2020 the proportion of investors planning to commit $300mn or more in the next 12 months has increased to 10%.
Ashish Chauhan, Private Debt Spokesperson of Preqin said: "A g...................... To view our full article Click here
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