{"id":61659,"date":"2017-03-22T00:15:01","date_gmt":"2017-03-21T23:15:01","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/private-debt-industry-assets-approach-600bn\/"},"modified":"2017-03-22T00:15:01","modified_gmt":"2017-03-21T23:15:01","slug":"private-debt-industry-assets-approach-600bn","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/private-debt-industry-assets-approach-600bn\/","title":{"rendered":"Private Debt Industry Assets Approach $600bn"},"content":{"rendered":"<p><em> <strong>Total assets grow by 7% over H1 2016, with fund managers on course to distribute a record<br \/>\nlevel of capital to investors across the year<\/strong> <\/em><\/p>\n<p>The private debt industry has continued to grow in recent years, and as of the end of H1 2016 reached a record<br \/>\n$595bn in assets under management. Launched today, the 2017 Preqin Global Private Debt Report finds that both<br \/>\nthe level of capital available to fund managers (\u2018dry powder\u2019) and the total value of unrealized investments increased,<br \/>\ndriving AUM up by $40bn from the end of 2015. Moreover, this increase comes despite the fact that private debt funds<br \/>\ndistributed record levels of capital to investors in 2015, and look set to return over $100bn in 2016 for the first time<br \/>\never. This level of capital returning to investors has spurred satisfaction in the asset class, and in turn may help private<br \/>\ndebt funds to record a landmark year in 2017.<\/p>\n<p>Key Findings from the 2017 Preqin Global Private Debt Report:<\/p>\n<ul>\n<li> Industry assets reached $595bn as of the end of June 2016. This comprises $224bn in dry powder and $371bn in the unrealized value of invested assets.<\/li>\n<li> The industry has seen a decade of successive annual increases in AUM, and consequently the asset class has quadrupled in size since 2006.<\/li>\n<li> Distressed debt funds account for over a third (38%) of total industry assets, with direct lending (26%) and mezzanine (23%) funds comprising the bulk of remaining AUM.<\/li>\n<li> This growth comes despite record levels of capital being returned to investors. Distributions totalled $95bn in 2015, and a further $58bn was returned in H1 2016.<\/li>\n<li> This has prompted a high level of satisfaction among investors in the asset class, with 68% holding a positive view of the asset class, and only 4% saying the reverse.<\/li>\n<li> As such, 2016 marked another year of robust fundraising, with 131 vehicles raising a combined $93bn, the third highest annual total of all time.<\/li>\n<\/ul>\n<p>Ryan Flanders, Head of Private Debt Products:<br \/>\n<em>\u201cThe private debt asset class continues to ride the crest of a wave which has brought substantial fundraising totals<br \/>\nover the past two years, record distributions and overwhelming investor satisfaction. It is therefore of little surprise that<br \/>\nthe industry has seen yet further expansion with global assets under management on track for a tenth consecutive<br \/>\nannual increase through 2016.<br \/>\nBoth dry powder and unrealized value are at all-time highs, a promising sign for the continued prosperity of the<br \/>\nindustry. However, private debt managers will be aware that growing dry powder may lead to material yield<br \/>\ncompression. At the same time, banks continue to return to the marketplace in Europe and the easing of financial<br \/>\nregulations under a Trump presidency may also endanger the growth of private credit in the US.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The private debt industry has continued to grow in recent years, and as of the end of H1 2016 reached a record $595bn in assets under management. Launched today, the 2017 Preqin Global Private Debt Report finds that both<br \/>\nthe level of capital available to fund managers (\u2018dry powder\u2019) and the total value of unrealized investments increased, driving AUM up by $40bn from the end of 2015.<\/p>\n","protected":false},"author":20,"featured_media":61657,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1655,1856,1859,1681,1651,1437,1724,2091],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/61659"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=61659"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/61659\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/61657"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=61659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=61659"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=61659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}