Private Debt

 

Non-bank institutions making loans to private companies.

 

Private debt makes up approximately 15% of the private market.

triangle-left-24_edited.png

Types of Private Debt Fund Managers

  • Direct Lending

  • Distressed Debt

  • Mezzanine Debt

  • Real Estate Debt

  • Infrastructure Debt

  • Special Situations Debt

Why Invest in Private Debt

Private debt has outperformed two key benchmarks over the last 30 years: Global High Yield and US Investment grade. Private Debt adds much needed diversity to portfolios with equity like returns, bond – like volatility, and very low correlation to other asset classes.

 

THE RISE OF PRIVATE DEBT; IPE

Types of Institutional Investors

 

Public Pension Funds (~35%)

Private Pension Funds (~18%)

Asset Managers (~14%)

Insurance Companies (~14%)

Other Institutions Include: Sovereign Wealth Funds, Foundations, Endowments, Family Offices

Top Private Debt LPs

  1. Virginia Retirement System (Public Pension Fund) Richmond, VA – AUM 78.1 Bn

  2. African Development Bank (Bank) Abidjan, Ivory Coast – AUM 40.1 Bn

  3. Arizona State Retirement System (Public Pension Fund) Phoenix, AZ – AUM 39.2Bn

  4. Liberty Group (Insurance Company) South Africa – AUM 52.6 Bn

  5. CalPERS (Public Pension Fund) Sacramento, CA – AUM 352 Bn

  6. Oregon State Treasury (Public Pension Fund) Salem, OR – AUM 77.3Bn

  7. Universities Superannuation Scheme (Private Pension) London, UK – AUM 81.6Bn

  8. New York City Police Pension Fund (Public Pension Fund) New York, NY - AUM 39.2Bn

  9. AG2R La Mondiale (Insurance Company) Paris, France – AUM 115.9Bn

  10. FINEP (Government Agency) Rio de Janeiro, Brazil – AUM 5Bn

  11. QIC (Asset Manager) Brisbane, Australia – AUM 64.5Bn

  12. Future Fund (Sovereign Wealth Fund) Melbourne, Australia – AUM 106.8Bn

  13. North Carolina Department of State Treasury (Public Pension Fund) Raleigh, NC – AUM 98.3Bn

  14. Afore XXI Banorte (Private Pension Fund) Mexico City, MX – AUM 36.2Bn

  15. Florida State Board (Public Pension Fund) Tallahassee, FL – AUM 197.3Bn

 

PREQIN SPECIAL REPORT: THE PRIVATE DEBT TOP 100

State of Private Debt Fundraising

 

PRIVATE DEBT FUNDRAISING DROPS 28BN; Private Debt Investor

 

PRIVATE DEBT LOSES ITS SHINE; Institutional Investor

 

PRIVATE DEBT FUNDRAISING SAW A DECLINE IN 2019; Pitchbook

Articles of Interest

 

PRIVATE DEBT PERFORMANCE EXPECTATIONS LOW AMID PRICING CONCERNS; Opalesque

 

PRIVATE DEBT COMPETITION IS THINNING; Asset Securitization Report