Direct Lending – A Mature Market?

Private debt has erupted onto the scene with senior loans, mezzanine financing, infrastructure debt and even distressed debt recently gaining a large following as investors hunt for better returns and longer term relationships in the current low interest rate environment.

Data from Preqin reveals that nearly two-thirds of credit funds that closed in the first quarter of 2017 exceeded their target fund raising levels. 80 funds raised USD39.1 billion in capital in the second quarter of 2017. All the signs point to private debt continuing to grow as an asset class with increasing competition for deals. It is now a crowded market and arguably a more mature one.

This article was originally published in Spotlight Credit Funds

Click here for a PDF of the full text