PRIVATE DEBT

PRIVATE DEBT:

 

Non-bank institutions making loans to private companies. Private debt makes up approximately 15% of the private markets.

 

TYPES OF PRIVATE DEBT FUND MANAGERS

  1. Direct Lending

  2. Distressed Debt

  3. Mezzanine Debt

  4. Real Estate Debt

  5. Infrastructure Debt

  6. 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

https://www.ipe.com/research-the-rise-of-private-debt/10012090.article

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

https://docs.preqin.com/reports/Preqin-Special-Report-The-Private-Debt-Top-100-August-2018.pdf

 

STATE OF PRIVATE DEBT FUNDRAISING​

PRIVATE DEBT FUNDRAISING DROPS 28BN; Private Debt Investor

https://www.privatedebtinvestor.com/private-debt-fundraising-drops-28bn-in-2019/

 

PRIVATE DEBT LOSES ITS SHINE; Institutional Investor

https://www.institutionalinvestor.com/article/b1jv76pp0q516b/Private-Debt-Loses-Its-Shine

 

PRIVATE DEBT FUNDRAISING SAW A DECLINE IN 2019; Pitchbook

https://pitchbook.com/news/articles/against-expectations-private-debt-fundraising-saw-a-decline-in-2019

ARTICLES OF INTEREST ON PRIVATE DEBT

PRIVATE DEBT PERFORMANCE EXPECTATIONS LOW AMID PRICING CONCERNS; Opalesque

https://www.opalesque.com/678056/Private_debt_Performance_expectations_low_amid_concerns_over805.html

 

PRIVATE DEBT COMPETITION IS THINNING; Asset Securitization Report

https://asreport.americanbanker.com/articles/private-debt-competition-is-thinning-adams-street-says