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Bailey McCann, Opalesque New York: Investors of all types continue to pile into private debt. According to data from PitchBook, $94.9 billion has been raised in the first half of this year. That figure is higher than the $91.4 billion raised over the same period last year. In total, private debt is on track for another year with total funds raised topping $200 billion - a four year trend that places the asset class ahead of others within the private equity universe.
Additional private debt products including retail fundraising for non-traded BDCs, interval funds and tender offer funds have raised $16.6 billion in the first half of this year. These new structures have allowed private debt sponsors to gather an additional $200 billion in AUM over the last three years. PitchBook analysts note that this number will likely continue to climb as firms including Fidelity, Eaton Vance, KKR, PIMCO, and Variant all have plans to launch permanent capital vehicles in the private debt space. The total AUM in private debt now exceeds $1.75 trillion.
Investors appear to be rewarding the asset class for preserving capital and performing relatively well over the past year even though business conditions have softened. PitchBook analysts note that while "stock and fixed-income investors suffered
large losses of 18.1% on the S&P 500 and 15.7% on high-grade
corporate bonds in 2022, the Morningstar LSTA US Leveraged
Loan Index was relatively unchanged at -0.6%. Private debt
funds perfo...................... To view our full article Click here
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