Distressed Debt: Waiting for the Boom
Although distressed debt assets under management have increased to reach over $250bn as of June 2018, fundraising figures for H1 2019 are not as high as perhaps expected, with just four funds closing on a total $2.5bn.
In this factsheet, we look at investor sentiment on the strategy to identify where pockets of activity may occur: 44% and 43% of investors believe direct lending and special situations funds present the best opportunities respectively. The majority (61%) of surveyed alternatives investors believe we are at the peak of the market cycle, and though 40% of private debt investors feel assets are priced fairly, 35% believe they are overvalued and that a market correction is likely within 12 months.
The information presented in this factsheet is also available to download in Excel format.