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Laxman Pai, Opalesque Asia: Global private debt fundraising reached $118bn in Q3 2024, with Preqin analysts believing a full-year figure will be below 2023's $214bn. It is likely to align with the 10-year average annual fundraising number of $161bn.
According to the Preqin Global Report 2025: Private Debt, full-year global private debt fundraising in 2024 is expected to be down compared to 2023 owing to a weak Q1 2024.
"Full-year global private debt fundraising in 2024 is expected to be down compared to 2023 owing to a weak Q1 2024," it said.
The report shows that while private debt fundraising saw a substantial recovery after a slow Q1 2024, it was not enough to catch up on the ground lost during those first three months of the year. This challenging fundraising environment for the asset class saw private debt investors adopt a more defensive approach as well as create a shift in the balance of power between fund managers and investors when it comes to fees.
Within the context of a weaker fundraising environment for the asset class, fee levels in 2024 were impacted. The mean management fee for direct lending decreased by 0.26% year-on-year to 1.42%.
Preqin analysts perceive fee pressure may continue for direct lending until fundraising forecasts improve in 2026. Other private debt strategies, such as mezzanine, distressed debt, and special situations, tend to have higher levels of fees, which is reflective of the active management required in those ...................... To view our full article Click here
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