Fri, Dec 9, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private debt fundraising slows down

Monday, October 03, 2022

Bailey McCann, Opalesque New York:

Private debt fundraising seems to have hit a speed bump following a record-breaking 2021. New PitchBook data shows that private debt managers raised $82.0 billion across 66 funds globally in the first six months of the year, however, H1's total accounts for less than 40% of that trailing 12-month figure.

PitchBook suggests that the selloff in equities markets may be partly to blame for the slowdown in activity as investors reassess their portfolios and pause any new allocations. For investors with target allocations, the problem can be especially acute. As those portfolios sell out of listed equities they may end up temporarily over-allocated to other asset classes and have to manage their total exposure before putting capital to work. These are likely to be temporary conditions, however. PitchBook analysts suggest that growth is likely to return to the asset class later this year and into the first half of 2023.

Private debt funds are reacting to these current market conditions with a bit of volatility. Q4 2021 private debt performance came in at 3.2%, which was higher than the third quarter's 0.6% return. But the preliminary Q1 2022 figure from PitchBook shows another pullback down to 0.6%. Rising rates and rising inflation have eroded some performance gains for income assets.

"Given the limited upside-and hopefully limited downside-of private debt due to the return of capital plus interest characteristics that provi......................

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. Opalesque Exclusive: Marks delves into what really matters[more]

    B. G., Opalesque Geneva: Howard Marks, co-founder and co-chairman of Oaktree Capital Management, weighs what should and should not matter for investors in his latest memo last week. Among the things t

  2. Legal: British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m, DOL slams lawsuit seeking to overturn crypto guidance[more]

    British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m From Offshore Alert: Four days before a trial was due to start in the Cayman Islands, British fund manager Jeremy Leach and eight of his firms settled a fraud complaint by agreeing to pay $11.5 million o

  3. Family offices upbeat on private assets, reduce public assets exposure[more]

    Laxman Pai, Opalesque Asia: Family offices are investing more in private assets and cutting back on investments in public markets, with higher risk-adjusted returns cited as the main driver, said a study. According to the survey findings by German digital private equity firm Moonfare, and the

  4. Opalesque Exclusive: A Swiss managed futures strategy that can offer diversification to any portfolio[more]

    B. G., Opalesque Geneva for New Managers: TARO (R) Diversified is a Swiss algorithmic and systematic investment strategy that offers diversification benefits to almost any professionally managed portfolio through it

  5. Alts manager Medalist Partners acquires a minority stake in Semper Capital to tap opportunities in structured credit[more]

    Laxman Pai, Opalesque Asia: Medalist Partners, which specializes in private credit, has acquired a minority stake in Semper Capital to extend its offerings to the mass market. Medalist currently manages approximately $2.2 billion in assets across strategies in asset-based private credit, struc