Alternative assets data provider Preqin has announced that assets invested with private debt managers now amount to more than half a trillion dollars ($500 billion) and assets increased by 8% in 2015.
According to Preqin, distressed debt funds are the largest single category, with $199 billion in assets, followed by mezzanine funds, with $130 billion, while direct lending saw the fastest rate of growth and now has $115 billion. European private debt saw rapid growth in 2015, accounting for 35% of new capital raised by private debt funds. It added that as at February 2016, there are 260 private debt funds on the road seeking aggregate capital commitments of $123 billion. Ryan Flanders, head of private debt products at Preqin, commented: “Private debt received a resounding mark of approval from the institutional investor community in 2015, and sustained investor confidence testifies that the asset class can produce strong, risk-adjusted returns.”