A new report from Preqin shows that private debt activity slowed down over 2019. Dealmaking also lagged from 2018.
The report shows that more than 200 private debt funds closed every year from 2015 t0 2018.
Last year, however, just 152 funds reached their final close and raised $107 billion. That latter figure represented an 11% decline from 2018. Dry powder slipped from $292 billion to $261 billion over the course of a year.
CalPERS, the largest pension fund in the country, may invest in private debt to boost returns. The fund may also change its investment policy on private debt on the initiative of Chief Investment Officer Ben Meng. Meng would certainly be aware that other funds are likely raking in returns as high as 10% on private debt.
As low or negative rates bite, family offices invest more and more in private debt.
Wealthy individuals and family offices are lending money where banks fear to tread. Gone are the days when high net worth investors could rely on traditional investments to preserve the value of their nest egg for their families and descendants. Enter: private debt.
A lending crisis has opened up profitable opportunities to lend to Indian performing companies.
The Canada Pension Plan Investment Board (CPPIB) and the Ontario Teachers Pension Plan, may deploy up to $1.5 billion in Indian private credit.
Park Square Capital, a US$10 billion investor in private credit, is a signatory to the UNPRI.
ESG in private credit deals is making steady progress as investors wise up to the risks from ignoring Environment, Social, and Governance (ESG) criteria.