private debtspotlight...capital earmarked for north america has more than doubled, reflective of the...

VOLUME 3, ISSUE 3 ■ MARCH 2018

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IN THIS ISSUE

FEATURE Assets under Management and Dry Powder

3

FEATUREEvolution of the Investor Universe

6

INDUSTRY NEWS 9

THE FACTS■ Private Debt in

Context■ Regional Fundraising■ Largest Investors by

Region

11

1415

CONFERENCES 17

ASSETS UNDER MANAGEMENT AND DRY POWDER

The private debt industry saw assets under management reach a record high of $638bn as at the end of June 2017. With the exception of 2014, this year-on-year growth has resulted in AUM increasing threefold since 2007, as private debt has rapidly matured into an established asset class.

Find out more on page 3

EVOLUTION OF THE INVESTOR UNIVERSE

The private debt industry saw continued interest from investors throughout 2017, while allocators new to the asset class made their maiden commitments. There are currently over 3,100 institutional investors that are actively investing in private debt opportunities or are considering entering the asset class.

Find out more on page 6

JUST RELEASED: 2018 PREQIN GLOBAL PRIVATE DEBT REPORT

2018PREQIN GLOBALPRIVATE DEBTREPORT

ISBN: 978-1-912116-09-6$175 / £125 / €150www.preqin.com

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PRIVATE DEBT

SPOTLIGHT

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© Preqin Ltd. 2018 / www.preqin.com3 Private Debt Spotlight | March 2018

ASSETS UNDER MANAGEMENT AND DRY POWDERWe analyze the latest private debt assets under management and dry powder figures, including breakdowns by vintage year, fund type and geography.

The private debt industry saw assets under management (AUM) – defined

as the uncalled capital commitments (dry powder) plus the unrealized value of portfolio assets – reach a record high of $638bn as at the end of June 2017 (Fig. 1). With the exception of 2014, this year-on-year growth has resulted in AUM increasing threefold since 2007, as private debt has rapidly matured into an established asset class.

Unlike other private capital asset classes, private debt did not experience a contraction in AUM in 2008/2009: unrealized value of portfolios increased by 30% and dry powder experienced a rare fall, as fund managers faced few problems in deploying capital given the challenging world economic climate and opportunities in the absence of bank lending.

AUM BY VINTAGE YEARUnsurprisingly, the majority ($159bn) of dry powder is held within the recent fund vintages 2015-2017, with the largest shares of unrealized value held in 2013-2015 vintage funds (Fig. 2). The levels of dry powder highlight perhaps the

industry’s greatest asset and greatest challenge, as well as the underlying cause for investor concern regarding deal flow and competition among fund managers for access to quality investment opportunities in the coming year.

AUM BY FUND TYPEAs at June 2017, distressed debt funds have the greatest AUM of all private debt strategies (Fig. 3), accounting for

35% of industry AUM. Direct lending and mezzanine funds make up the bulk of the remaining AUM within the asset class, representing 28% and 23% respectively, followed by special situations (13%) and venture debt’s 2%, or $11bn in total AUM.

DRY POWDER BY FUND TYPEStrong performance of private debt funds and contrasting lacklustre results from traditional fixed income products

99 111 105 117 131 132195 175 214 217 227

106135 177

215240 268

279 297

337387 411

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UnrealizedValue ($bn)

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Source: Preqin Private Debt Online

Asse

ts u

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Man

agem

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$bn)

Fig. 1: Private Debt Assets under Management, 2007 - 2017

2 3 1 2 3 314

32

59 5941

18 2012

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Fig. 2: Private Debt Assets under Management by Vintage Year (As at June 2017)

71107

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Venture Debt

Special Situations

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Distressed Debt

Direct Lending


Fig. 3: Private Debt Assets under Management by Fund Type (As at June 2017)



have increased investor appetite for the asset class. Fund managers have enjoyed buoyant fundraising in recent years, leading to increased dry powder across all private debt strategies. The increase in dry powder among direct lending funds is most impressive, with available capital having more than tripled between December 2012 and December 2017, eclipsing that of distressed debt funds as at December 2017 (Fig. 4).

DRY POWDER BY GEOGRAPHIC FOCUSGeographically, the majority of dry powder over time has been held by funds focusing on opportunities in North America, holding an estimated $156bn as at December 2017 (Fig. 5). Over the period shown, dry powder in Europe-focused funds has increased to nearly 5x the amount that was available in 2007, while capital earmarked for North America has more than doubled, reflective of the rapid increase in fundraising over the past five years. Asia- and Rest of World-focused private debt dry powder totals have remained relatively static over the years, collectively accounting for less than 6% of capital available globally.

8172

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Direct Lending Distressed Debt MezzanineSpecial Situations Venture Debt


Dry

Pow

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($bn

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Fig. 4: Private Debt Dry Powder by Fund Type, 2007 - 2017

156

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Fig. 5: Private Debt Dry Powder by Primary Geographic Focus, 2007 - 2017

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Fig. 6: Private Debt - Annual Amount Called up, Distributed and Unrealized Value, 2007 - H1 2017

3.6

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Ratio

Fig. 7: Ratio of Year-End Private Debt Dry Powder Levels to Prior-Year Total Capital Called, 2007 - 2016

Capi

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/Dis

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($bn

)

Unrealized Value ($bn)

SOURCEEVALUATEinvestment opportunities

GAINunparalleled industry insights

investors for funds

Register for a demo today:

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Private Debt Spotlight | March 20186 © Preqin Ltd. 2018 / www.preqin.com

EVOLUTION OF THE INVESTOR UNIVERSEThe private debt investor universe has grown considerably in recent years. Here, we examine the current make-up of investors in the asset class and how this has changed over time.

The private debt industry has maintained steady interest from

investors throughout 2017, while allocators new to the asset class made their maiden commitments. There are currently over 3,100 institutional investors that are actively investing in private debt opportunities or are considering entering the asset class, an increase of 700 investors over the course of 2017 and 1,200 since the start of 2016.

TYPES OF ACTIVE INVESTORSThe constituency of active investors in the private debt space is made up of an array of investor types, with varying levels of AUM and investment strategies. As shown in Fig. 1, private sector pension funds (16%), public pension funds (13%) and foundations (13%) are the most prominent investor types in private credit. Despite the growth in the number of investors that are active in private debt, the make-up of investors has remained largely unchanged over time.

LOCATIONS OF PRIVATE DEBT INVESTORSThere is a strong concentration of investors in North America and Europe, as has been the case during the expansion of private debt in the past decade; when combined, the two regions account for 81% of all investors active in the asset class (Fig. 2). Over half (57%) of private

62% 58% 57%

26%25% 24%

6%9% 11%

6% 8% 8%

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Jan-16 Jan-17 Jan-18

Rest of World

Asia

Europe

North America


Prop

ortio

n of

Inve

stor

s

Fig. 2: Make-up of Investors in Private Debt by Location, 2016 - 2018

Fig. 3: Largest Public Pension Funds by Number of Known Private Debt Fund Commitments

Investor Assets under Management ($bn) No. of Known Private Debt Fund Commitments (All Time)

California Public Employees' Retirement System (CalPERS) 345.1 107

California State Teachers' Retirement System (CalSTRS) 221.7 71

Minnesota State Board of Investment 89.1 66

Oregon State Treasury 82.3 64

San Francisco Employees' Retirement System 24.0 64

State of Wisconsin Investment Board 113.0 62

Florida State Board of Administration 197.3 61

Pennsylvania Public School Employees' Retirement System 52.9 61

Michigan Department of Treasury 65.6 58

Pennsylvania State Employees' Retirement System 27.6 57



Fig. 1: Make-up of Investors in Private Debt by Type

Private SectorPension Fund

16%

Public Pension Fund13%

Foundation13%

EndowmentPlan9%

InsuranceCompany

9%

Other14%

FamilyOffice

8%

WealthManager

6%

Private

Wealth

Institutional

Asset Manager

6%

Fund of Funds Manager

6%


Private Debt Spotlight | March 20187 © Preqin Ltd. 2018 / www.preqin.com

debt investors are located in North America, a slightly smaller proportion than the previous year due to a proportional increase in the number of investors based in Asia, with South Korea increasing by 36%, China by 52% and India by 110% within the same timeframe. The significant growth of India-based investors may in part be attributed to the May 2016 Insolvency and Bankruptcy Code which provided an opportunity for the private debt industry to flourish.

AVERAGE ALLOCATIONS BY INVESTOR TYPEThe average current and target allocations of investors within the debt space vary considerably, with insurance companies recording the lowest average current allocations to the asset class (2.1% of total assets, Fig. 4). Family offices are the top allocators to private debt (7.6% average current allocation), with the average target allocation for family offices sitting at 4.8%. Investors at the lower end of the spectrum include public and private sector pension funds, which have a 2.7% and 2.9% average current allocation to private debt respectively.

With the exception of family offices, all investor types within the space have average target allocations higher than their average current allocations to the asset class, indicating the potential for further growth in the amount of capital committed to private debt moving forward.

SOURCE OF ALLOCATIONOver half (57%) of investors make investments in private debt through their private equity allocations (Fig. 5). Conversely, only 4% of investors make investments in private debt through their fixed income allocations. This suggests that the asset class is largely viewed by investors as an alternative investment due

to its illiquid and less volatile nature in conjunction with low correlation to public markets.

OUTLOOKAs the number of investors actively targeting private debt increases in tandem with allocations to the asset class, it is expected that the industry will continue

to see steady growth moving forward. Following Preqin’s December 2017 investor interviews, results showed that 54% of private debt investors will look to increase their allocation to the asset class over the longer term, with a further 44% looking to maintain their current allocation.

7.6%6.3%

3.0%

6.7%

3.6%2.9% 2.7%

2.1%

4.8%

10.5%

6.7%

10.9%

5.8% 5.6% 5.3%4.5%

0%

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Fam

ilyO

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Average Current Allocation Average Target Allocation


Aver

age

Allo

catio

n to

Pri

vate

D

ebt (

As a

% o

f AU

M)

Fig. 4: Average Current and Target Allocations to Private Debt by Investor Type

View detailed profiles of over 3,100 institutional investors actively or considering investing in private debt funds, including future plans, allocation information, past investments, contact details and more.

For more information, please visit:


PREQIN’S INVESTOR DATA

12% 11% 14%

11% 11% 11%

54% 53%57%

6% 6%4%1% 2%

1%13% 14% 10%3% 3% 3%

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Jan-16 Jan-17 Jan-18

Other

Part of Multiple Allocations

Part of Opportunistic Allocation

Part of Fixed Income Allocation

Part of Private Equity Allocation

General Alternatives Allocation

Separate Private Debt Allocation


Fig. 5: Private Debt Investors by Source of Allocation, 2016 - 2018

Aver

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t (As

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)


THE 2018 PREQINGLOBAL ALTERNATIVES

REPORTSThe Reports analyze our market-leading global data and recent survey results

to provide you with a deeper understanding of the industry.

Featuring extensive data and insights on fundraising, investor appetite, performance, deals, fund terms and more, the Reports provide a valuable indication of activity in 2018.

The series of six covers the following asset classes:Private Equity & Venture Capital ■ Hedge Funds ■ Real Estate ■ Infrastructure

Private Debt ■ Natural Resources

In 2017, over 60,000 Reports provided individuals with an up-to-date understanding of alternatives, and 95% of readers surveyed rated the quality as good or excellent.

For more information or to order your copies, please visit:www.preqin.com/reports

2018PREQIN GLOBALREAL ESTATEREPORT


2018PREQIN GLOBALINFRASTRUCTUREREPORT


2018PREQIN GLOBALPRIVATE DEBTREPORT


2018PREQIN GLOBALNATURAL RESOURCESREPORT


2018PREQIN GLOBALHEDGE FUNDREPORT


2018PREQIN GLOBALPRIVATE EQUITY &VENTURE CAPITALREPORT


www.preqin.com/reports

INDUSTRY NEWS


Sixteen private debt funds have held a final close in 2018 so far, securing an aggregate $8.7bn. Eight of the funds are mezzanine vehicles, four direct lending, three special situations and one distressed debt. The largest fund closed so far is KKR’s Private Credit Opportunities Partners II, a $2.24bn fund focused on mezzanine investments as part of leveraged buyouts, recapitalizations, refinancing, growth financing and other private equity-sponsored transactions for large cap and middle-market companies.

The start of 2018 featured 10 US-focused funds reaching a final close, with four targeting Europe, and only one fund targeting each Asia and Latin America. The lone South America-focused fund closed is the $40mn Adobe Mezzanine Fund II, which is the second debt fund raised by Adobe Capital, an impact investment firm focused on financing small and medium-sized enterprises in Mexico and Latin America.

First Abu Dhabi Bank (FAB) is considering investing in private debt over the next 12 months. FAB is the result of a merger in April 2017 between First Gulf Bank and National Bank of Abu Dhabi, creating the biggest bank in the UAE. FAB has not yet indicated any strategy or geographic preferences for its potential investment in private debt.

Nigeria Sovereign Investment Authority (NSIA) will consider investing in private debt in the next 12 months. The sovereign wealth fund currently invests in the private equity, real estate, hedge funds, infrastructure and natural resources asset classes, and is looking to add private debt to its alternatives portfolio. NSIA was established to develop Nigerian

infrastructure and to act as a stabilization tool during times of economic volatility.

Tyne and Wear Pension Fund plans to invest £260mn in private debt funds over the next 12 months. The public pension fund has chosen alternative investment managers Pemberton Capital Advisers and HPS Investment Partners to manage the investment. It has a preference for direct lending, senior debt and mezzanine within the European and North American markets.

Obviam plans to make two private debt fund commitments and three direct debt investments, deploying between $40mn and $50mn. It will continue targeting direct lending and mezzanine vehicles, focusing on opportunities in emerging and frontier markets, including Africa, Latin America and Southeast Asia. Within direct lending, it prefers strategies targeting senior debt layers of the capital structure. The firm is looking to work with existing managers within its investment portfolio and form new GP relationships.

Hoegh Capital Partners will consider investing in global direct lending funds in the next 12 months. Fondazione Livorno invests out of a general alternatives allocation and has a preference for direct lending with a European focus.

Arizona Public Safety Personnel Retirement System committed to three new private debt funds recently. It committed $75mn to Crestline Specialty Lending Fund II, a senior debt direct lending fund. The public pension fund also committed $100mn to Audax Senior Debt – a direct lending fund focused on junior/subordinated debt, mezzanine, blended/opportunistic debt, unitranche debt – and $75mn to Stellus Credit Fund II, a direct lending fund.

Seaman’s Pension Fund will be looking to invest in two or three new private debt funds over the next 12 months. Seaman’s

Pension Fund currently allocates 7% of its total investment portfolio to private debt funds and will be looking to commit €5mn to €10mn per fund over the next year. It will be focusing on direct lending funds in Europe and is interested in co-investing alongside fund managers. Its fund selection process will be overseen by Certior Capital. For its forthcoming investments, Seaman’s Pension Fund will be looking to invest with a mix of new and existing fund managers.

MdF Family Partners will be looking to invest in new private debt funds. It will be taking an opportunistic approach to the asset class over the next year, and has a preference for venture debt and direct lending funds in Europe.

INDUSTRY NEWS

RECENTLY CLOSED FUNDS

This month’s industry news looks at funds closed so far in 2018, as well as investors that have recently made commitments to the asset class or that are planning to in the near future.

RECENT INVESTOR NEWS

KEY FACTS

$2bnFinal size of Guggenheim Private Debt Fund II, the largest direct lending fund to closed 2018 YTD (As at 16 February).

$72bnAggregate capital sought by direct lending funds in market globally, the most of any private debt strategy.

$8.7bnTotal private debt capital raised in 2018 YTD across 16 funds closed.

63%of private debt funds closed in 2018 YTD are targeting the US as a main investment focus.

https://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=50952&src=9


https://www.preqin.com/user/pd/fundmanagers/pd_fundmanagers_fundmanagerprofile.aspx?firmid=436&src=9



https://www.preqin.com/user/pd/investors/pd_investors_investorprofile.aspx?firmid=16579&src=9
















PREQIN GLOBAL DATA COVERAGE

+PLUS

Comprehensive coverage of:

+ Placement Agents + Dry Powder+ Fund Administrators + Compensation+ Law Firms + Plus much more...+ Debt Providers

THE PREQIN DIFFERENCE+ Over 390 research, support and development staff + Global presence - New York, London, Singapore,

San Francisco, Hong Kong, Manila and Guangzhou+ Depth and quality of data from direct contact methods+ Unlimited data downloads+ The most trusted name in alternative assets

*Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equity secondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multi-manager funds.

PRIVATE EQUITY* HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT NATURAL

RESOURCES

INVESTORCOVERAGE

7,047Active

Private Equity LPs

5,322Active

Hedge Fund Investors

6,229Active

Real Estate LPs

3,321Active

InfrastructureLPs

3,195Active

Private Debt Investors

3,241Active

Natural Resources Investors

FUNDCOVERAGE

19,451Private Equity

Funds

25,695Hedge Funds

7,055PE Real Estate

Funds

1,293Infrastructure

Funds

2,531Private Debt

Funds

1,978Natural Resources

Funds

FIRMCOVERAGE

13,363Private Equity Firms

9,447Hedge Fund

Firms

4,764PE Real Estate

Firms

548Infrastructure

Firms

1,599Private Debt

Firms

1,044Natural Resources

Firms

PERFORMANCECOVERAGE

6,082Private Equity

Funds

18,242Hedge Funds

1,809PE Real

Estate Funds

263Infrastructure

Funds

867Private Debt

Funds

559Natural Resources

Funds

FUNDRAISINGCOVERAGE

2,650Private Equity

Funds

17,121Hedge Funds

1,243PE Real

Estate Funds

180Infrastructure

Funds

349Private Debt

Funds

257Natural Resources

Funds

Alternatives Investment Consultants Coverage:

556Consultants Tracked

Funds Terms Coverage: Analysis Based on Data for Around

17,451Funds

Best Contacts: Carefully Selected from our Database of over

448,272Contacts

2015 Annual CAIA CorporateRecognition Award Winner

As at 1st March 2018

ALTERNATIVES COVERAGE

FIRMS FUNDS FUNDS OPEN TO INVESTMENT

INVESTORSMONITORED

FUNDS WITH PERFORMANCE DEALS & EXITS

30,765 58,003 21,800 15,774 27,822 327,376

DEALS & EXITSCOVERAGE

BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE PRIVATE DEBT

86,401Buyout Deals and Exits

155,038Venture Capital Deals

and Exits

51,577Real Estate Deals

26,893Infrastructure Deals

7,467Private Debt Deals

www.preqin.com/about

THE FACTS


PRIVATE DEBT IN CONTEXT

Fig. 3: Top Three Challenges Facing Private Capital Fund Managers in 2018 by Asset Class

Private Equity Private Debt Real Estate Infrastructure Natural Resources

Valuations Valuations Valuations Valuations Commodity Prices

Performance Deal Flow Deal Flow RegulationOngoing Volatility/

Uncertainty in Global Markets

Exit Environment Performance Interest Rates Deal Flow Public Perception of Industry

Source: Preqin Fund Manager Surveys, November 2017

1,477 1,430 1,586 1,733 1,807 1,947 2,189 2,242 2,388 2,582 2,829205 246281

332 371 400474 472

551604

638

408 398393

447 559593

706 749803

780811

100 118125

162210

221

276 296324

386418

58 7785

102114

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173 186194

230229

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Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Jun-17

Private Equity Private Debt Real Estate Infrastructure Natural ResourcesSource: Preqin Online Products

Asse

ts u

nder

Man

agem

ent (

$bn)

Fig. 1: Private Capital Assets under Management by Asset Class, 2007 - 2017

Preqin refers to ‘private capital’ as the broader spectrum of private closed-end funds, including private equity, private debt, private real estate, infrastructure and natural resources. Here, we put the private debt asset class into context within the wider private capital industry.

Fig. 2: Annual Aggregate Private Capital Raised by Asset Class, 2007 - 2017

414 407

213 178 226 234316 359 344

414 453

73 100

24 4144 63

7274 100

97107

139 148

53 5578 85

108114 136

126111

44 41

11 3326

29

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4766

6513 18

24 1211

31

3331

4425

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Private Equity Private Debt Real Estate Infrastructure Natural ResourcesSource: Preqin Online Products

Aggr

egat

e Ca

pita

l Rai

sed

($bn

)

Year of Final Close

THE FACTS


-5%

0%

5%

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15%

20%

1 Year 3 Years 5 Years 10 Years

Private Equity

Private Debt

Real Estate

Infrastructure*

Natural Resources

Source: Preqin Online Products

Annu

aliz

ed R

etur

n

Fig. 4: Horizon Returns of Private Capital Funds by Asset Class (As at June 2017)

Fig. 6: Proportion of Institutional Investors Allocating to Each Alternative Asset Class

PRIVATE EQUITY PRIVATE DEBT REAL ESTATE INFRASTRUCTURE NATURAL RESOURCES

56% 56%

Fig. 7: Institutional Investors’ Plans for 2018

*Insufficient data for 10-year infrastructure horizon.

Source: Preqin Online Products

PRIVATE EQUITY

PRIVATE DEBT

REAL ESTATE

INFRASTRUCTURE

NATURAL RESOURCES

Source: Preqin Investor Interviews, December 2017

8%

10%

16%

10%

19%

37%

42%

26%

39%

11%

Fig. 8: Institutional Investors’ Plans for Allocations in the Longer Term


4%

2%

11%

4%

18%

53%

54%

32%

55%

10%

34% 33% 38%

PRIVATE EQUITY

PRIVATE DEBT

REAL ESTATE

INFRASTRUCTURE

NATURAL RESOURCES

Fig. 5: Institutional Investor Views on Private Capital Performance

Perf

orm

ance

Exp

ecta

tions

for

Prev

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12 M

onth

s

Performance Expectations for Next 12 Months


Proportion of Investors Planning to Invest Less Capital than Previous Year ▼

Proportion of Investors Planning to Invest More Capital than Previous Year ▲

Proportion of Investors Planning to Decrease Allocation ▼

Proportion of Investors Planning to Increase Allocation ▲

The 7th Annual Investors’ Conference on CLOs and Leveraged Loans program will feature extensive coverage on outlook for issuance in 2018, structural and legal considerations, relative value from a research analyst and investor perspective, the role of CLOs in commercial real estate finance, leveraged loan performance and analysis, ratings methodology for CLOs, and more.

450+ CLO MANAGERS & INVESTORS ALREADY CONFIRMED!

The 7th Annual

May 23-24, 2018 | New York, NY

INVESTORS’ CONFERENCE ONCLOs & LEVERAGED LOANS

Lead Sponsors: Partner Sponsor:

Patron Sponsors:

Associate Sponsors:

For more information, and a full listing of sponsor firms, visit www.imn.org/clo. For sponsorship opportunities, contact Chris Keeping at [email protected] or 212-901-0533

4T H A NNUA L P R IV A T E DE B T C ONF E R E NC ENEW YORK 20 18

LP G P C onnect 4th annual P rivate Debt conference brings together 250 LP s and G P s from the global private debt community to analyse the latest trends in the market, discover new investment opportunities and build meaningful

bus iness relationships for long term growth.

22nd May 2018 Marriott E ast S ide, 525 Lexington Ave, New Y ork, NY 10017

S OME OF T HE C ONF IR ME D S P E A K E R S

T od T raboc c o, C F A Managing Director

C ambridge Associates

A oifinn Devitt C IO

P olicemen’s Annuity & B enefit F und of C hicago

S ylvia Owens S enior P ortfolio Advisor

Aksia LLC

Mark W. J ohns on S enior Managing Director

C liffwater LLC

www.lpgpconnect.com


http://www.imn.org/clo

http://www.lpgpconnect.com

THE FACTS


IN FOCUS: REGIONAL FUNDRAISING

55%

72%62% 56%

70%63%

30%

25%32%

34%

27%31%

14%2% 5% 7% 2% 6%

1% 1% 1% 3% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 2017

Rest of World

Asia

Europe

North America


Prop

ortio

n of

Agg

rega

te C

apita

l Rai

sed

Year of Final Close

Fig. 2: Proportion of Aggregate Capital Raised by Private Debt Funds Closed by Primary Geographic Focus, 2012 - 2017

178

82

3144

88

42

11 80

20

40

60

80

100

120

140

160

180

200

NorthAmerica

Europe Asia Rest of World

No. of FundsRaising

AggregateCapitalTargeted ($bn)

Source: Preqin Private Debt OnlinePrimary Geographic Focus

Fig. 3: Private Debt Funds in Market by Primary Geographic Focus (As at January 2018)

Fig. 1: Private Debt Fundraising in 2017 by Primary Geographic Focus

NORTH AMERICA

7567.0

EUROPE

4033.0

ASIA

135.9

REST OF WORLD

81.1


No. of Funds ClosedAggregate Capital Raised ($bn)

We take a look at private debt fundraising in 2017 by region as well as funds currently in market.

THE FACTS


LARGEST INVESTORS BY REGIONFig. 1: Largest Investors in Private Debt - Global

Investor Allocation to PD ($bn) Type Location

TIAA 26.3 Private Sector Pension Fund US

StepStone 16.0 Private Debt Fund of Funds Manager Switzerland

Netherlands Development Finance Company (FMO) 7.3 Government Agency Netherlands

Liberty Group 5.5 Insurance Company South Africa

California Public Employees' Retirement System (CalPERS) 5.0 Public Pension Fund US

African Development Bank 4.5 Bank Ivory Coast

Oregon State Treasury 4.2 Public Pension Fund US

Universities Superannuation Scheme 4.1 Private Sector Pension Fund UK

Arizona State Retirement System 4.0 Public Pension Fund US

FINEP 4.0 Government Agency Brazil


Fig. 2: Largest Investors in Private Debt - North America


TIAA 26.3 Private Sector Pension Fund US

California Public Employees' Retirement System (CalPERS) 5.0 Public Pension Fund US

Oregon State Treasury 4.2 Public Pension Fund US

Arizona State Retirement System 4.0 Public Pension Fund US

Virginia Retirement System 3.9 Public Pension Fund US


Fig. 3: Largest Investors in Private Debt - Europe


StepStone 16.0 Private Debt Fund of Funds Manager Switzerland

Netherlands Development Finance Company (FMO) 7.3 Government Agency Netherlands

Universities Superannuation Scheme 4.1 Private Sector Pension Fund UK

AG2R La Mondiale 3.6 Insurance Company France

Idinvest Partners 3.6 Private Equity Fund of Funds Manager France


Fig. 4: Largest Investors in Private Debt - Asia & Rest of World


Liberty Group 5.5 Insurance Company South Africa

African Development Bank 4.5 Bank Ivory Coast

FINEP 4.0 Government Agency Brazil

QIC 3.2 Asset Manager Australia

Afore XXI Banorte 3.1 Private Sector Pension Fund Mexico


We provide league tables of the largest investors in private debt by region.

Gaining full access is easy. To register for free please visit:

www.preqin.com/research

INDUSTRY-LEADING ALTERNATIVE ASSETS INSIGHTS. FOR FREE.

BENCHMARK

EXPLORE

TRACK

DOWNLOAD

alternative assets funds and assess the relative performance of private capital asset classes with our index

industry reports and newsletters looking at key trends

the latest stats on fundraising, deals, dry powder, industry AUM, investors and more

charts, league tables and slide decks from Preqin presentations at conferences

www.preqin.com/research

CONFERENCES


CONFERENCESMARCH 2018

Conference Dates Location Organizer Preqin Speaker Discount Code

Family Office Winter Forum 1 March 2018 New York, NY Opal Financial Group - -

Preqin Breakfast Seminar: Alternatives in 2018 - Singapore 7 March 2018 Singapore Preqin Ee Fai Kam

Amy Bensted -

LPGP Connect Private Debt London 13 March 2018 London LPGP Connect TBC -

Private Wealth Management Summit 15 - 16 March 2018 Las Vegas, NV marcus evans Summits - -

APRIL 2018


5th Annual Investors’ Conference on European CLOs and Leveraged Loans 11 April 2018 London IMN - -

Private Wealth Management Summit - APAC 16 - 18 April 2018 Macao marcus evans

Summits - -

The 8th Canadian Alternative Investment Forum 19 April 2018 Toronto Intro Cap - -

Impact Investing Forum 22 - 24 April 2018 Palm Beach, FL Opal Financial Group - -

European Pensions and Investments Summit 23 - 25 April 2018 Montreux marcus evans

Summits - -

Jersey Finance Annual Funds Conference 24 April 2018 London Jersey Finance - -

SuperReturn Private Credit Europe 24 - 25 April 2018 London KNect365 TBC 10% Discount – FKR2472PRQ

MAY 2018


Latin Private Wealth Management Summit 3 - 4 May 2018 Cancun marcus evans

Summits - -

The Institutional Investors' Executive Sector Meeting 6 - 7 May 2018 New York, NY Connex Partners TBC -

LPGP Connect Private Debt New York 22 May 2018 New York, NY LPGP Connect TBC -

7th Annual Investors' Conference on CLOs and Leveraged Loans 23 - 24 May 2018 New York, NY IMN - -

Women in Private Debt 23 May 2018 New York, NY LPGP Connect TBC -

ASK 2018 Private Debt & Equity Summit 29 May 2018 Seoul The Korea Economic

Daily - -

CONFERENCES


DATE: 22 May 2018

INFORMATION: https://www.lpgpconnect.com/privatedebt/4th-annual-lpgp-connect-private-debt-new-york/

LOCATION: New York

ORGANIZER: LPGP Connect

LPGP Connect 4th annual Private Debt conference brings together 250 LPs and GPs from the global private debt community to analyse the latest trends in the market, discover new investment opportunities and build meaningful business relationships for long term growth.

4TH ANNUAL LPGP CONNECT PRIVATE DEBT NEW YORK

DATE: 23 - 24 May 2018

INFORMATION: https://imn.org/structured-finance/conference/CLOs-and-Leveraged-Loans-2018/

LOCATION: Sheraton New York Times Square Hotel

ORGANIZER: IMN

IMN’s 7th Annual Investors’ Conference on CLOs and Leveraged Loans program will feature extensive coverage on outlook for issuance in 2018, structural/legal considerations, relative value from a research analyst and investor perspective, the role of CLOs in CRE finance, leveraged loan performance and analysis, ratings methodology for CLOs, and more.

7TH ANNUAL INVESTORS’ CONFERENCE ON CLOS AND LEVERAGED LOANS

DATE: 24 - 25 April 2018

INFORMATION: https://finance.knect365.com/superreturn-private-credit-europe/?vip_code=FKR2472PRQ

LOCATION: London

ORGANIZER: KNect365

SuperReturn Private Credit Europe delivers two days packed full of content and networking for the private credit community.

200+ attendees. 60+ industry leading LPs. 100+ influential GPs.

They all come together to share best practice and discover new opportunities.

SUPERRETURN PRIVATE CREDIT EUROPE 2018

https://finance.knect365.com/superreturn-private-credit-europe/?vip_code=FKR2472PRQ

https://imn.org/structured-finance/conference/CLOs-and-Leveraged-Loans-2018/

https://www.lpgpconnect.com/privatedebt/4th-annual-lpgp-connect-private-debt-new-york/

private debtspotlight...capital earmarked for north america has more than doubled, reflective of the...

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