Preqin Quarterly Update: Private Debt, Q1 2016
Sixteen private debt funds reached a final close in Q1 2016, securing a total of $8.3bn in commitments globally. The vast majority of capital raised is focused on opportunities in North America and Europe, with funds focused on these regions each collecting $4.1bn. North America-focused funds saw an increase in distressed debt fundraising, while direct lending was the main draw for Europe-focused funds Although 2016 may be off to a slower start compared with 2015, 265 private debt funds are currently in market, targeting an aggregate $130bn, suggesting that fundraising has the potential to pick up later in the year. With $186.5bn in dry powder across the industry at the end of Q1, there is a growing impetus on managers to put capital to work on the back of several strong fundraising cycles.