Private Debt Investor: Global Investor 30
Category: Private credit market research Year: 2019
7 November 2019
The emergence of private debt as an investable asset class in the past 10 years has had invaluable benefits for capital markets.
The report ranks the 30 largest investors in private debt based on the market value of their private debt investment portfolios, which at the time of publication was a combined $200 billion.
Richard von Gusovius and Jeffrey Griffiths provide insights on the evolution of the market, highlighting the emergence of the asset class from a niche alternative strategy to an increasingly mainstream part of private investors' portfolios. They also note the signs of growth in both fundraising and deployment and the risks surrounding a possible downturn.
We are more optimistic today regarding capital raising than at the beginning of the year. As expectations of rising interest rates vanished over the course of the first half of 2019, more investors actively expressed an interest to start or increase allocations to private debt.
In addition, the report examines how senior secured private direct lending can help investors looking to protect their total returns, versus both traditional fixed income and alternatives.
The report also includes interviews with White Oak Global Advisors, Angel Island Capital and Benefit Street Partners.
New allocations generally go into lower risk, lower return, large fund strategies with brand name managers with longer track records. That’s why you’ve seen, particularly in Europe, an explosion of fund sizes where brand name managers are able to aggregate increasingly large sums of capital.