Since the fallout of the financial crisis in 2008, the need for alternative providers of credit to companies – both public and private – has increased drastically given the restrictions on lending imposed on more traditional sources of debt financing.
The resulting Private Debt emerging alternative asset class (raising over $75bn in 2013) has provided an attractive investment opportunity for investors worldwide, sitting alongside their private equity and fixed income allocations, as well as providing numerous firms with vital debt capital to keep growing their businesses.
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While the industry has seen a rapid growth, the amount of quality information covering this space has been sparse. Preqin’s Private Debt Online product (www.preqin.com/privatedebt) has filled this vacuum, providing clients with a vast array of data and information on the institutional investors allocating to this emerging asset class, the fund managers that operate in the market, the funds they manage, the performance of the asset class and much more.
Key findings from Preqin’s research into the private debt universe include:
- Over 1,000 institutional investors worldwide have dedicated investment plans or commitments to private debt, which we anticipate to increase significantly over the coming years.
- The number of private debt funds holding a final close in 2013 reached 137, an increase of 45% from the number of funds that closed in 2012.
- Preqin currently monitors almost 700 managers worldwide that have raised in excess of 1,500 private debt vehicles historically, including direct lending, mezzanine, distressed debt, special situations, and venture debt funds.
- Private debt funds have generally been providing investors with net returns in excess of 10% per annum on average, with funds with vintage 2009 producing returns of 17% on average.
Comment:
"The launch of Preqin’s Private Debt Online product comes at an exciting time for the industry. Fundraising for direct lending and other private debt funds has seen extraordinary growth over recent years following the global financial crisis, and institutional investors across the globe are increasingly dedicating proportions of their assets to these fund types.
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By GlobalDataPreqin is dedicated to providing clients with unparalleled levels of data, research and information on the alternative asset universe and the growth of private debt as an independent asset class has allowed us to expand into this area. As this universe expands and develops, Preqin will be on hand to capture and analyze fund manager activity, fundraising, investor sentiment, performance and much more."
