|
Laxman Pai, Opalesque Asia: Last year Preqin predicted that private debt assets under management (AUM) will pass $2.0tn by 2025. Its new forecast suggests that AUM in 2025 will in fact reach $1.8tn, slightly lower than its previous estimate.
"Our revised estimate reflects enhancements to our AUM model, as well as weaker than previously expected economic growth, which reduced our forecast," said Preqin Global Report 2023: Private Debt.
The study forecasts out to 2027 suggest that private debt AUM will grow to $2.3tn in 2027, although with fundraising and performance at a slightly slower pace than in recent years. "We expect AUM growth to be strongest in North America, with APAC forecast to deliver returns above the global average," it said.
Based on Preqin's global fundraising data as of the end of Q3 2022, $172.1bn was raised by private debt funds globally, and total funds raised are expected to be broadly similar to 2021 (based on the pace of fundraising discussed further in Year in review: assessing last year's predictions).
"Despite the strength in overall fundraising, a more fragile picture emerges when we delve into the details, with the number of funds closed decreasing substantially (137 for 2022 up to Q3; 273 for 2021)," the report said. This suggests investors remain positive on the asset class but are becoming more discerning in their allocations, with larger commitments going to fewer managers.
Nevertheles...................... To view our full article Click here
|
RSS
