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Private debt fundraising dips in H1 but trend still strong, says Preqin

International investors’ interest in distressed debt has overtaken that of mezzanine — the previous favourite, according to the latest report from alternatives data firm Preqin. Overall, private debt fundraising levels fell back in the first half of this year, but the asset type is still seen reaching three-quarters of a trillion dollars in next 1-2 years.

Photo: Colourbox

Having more than tripled in size over the past decade, the private debt industry continued to attract huge sums of investment capital in the first half of this year — but slightly less than it had gathered in the same period last year.

According to the latest report on private debt assets from alternatives data firm Preqin, private debt funds secured USD 44 billion (EUR 37.9 billion) of new capital in the first half of 2018, trailing behind the US 49 billion secured in the first six months of 2017.

Tom Carr, Head of Private Debt Products at Preqin, said this indicated a slight lag for fundraising thus far in 2018, but pointed to a rising overall trend.

“There are more private debt funds in market — 389 — than ever before, and fund managers are eager to capture commitments from a growing pool of institutional investors targeting debt vehicles,” he said.

Preqin also said that the Q2 2018 figure was expected to rise as more information became available. In the second quarter alone, however, 22 private debt funds raised a total of USD 25 billion — up nearly USD 600 million compared to Q2 2017, and up USD 5.3 billion from the previous quarter.

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