John Bakie
Private equity funds have become prolific users of private debt products. But what is it about this type of lending that attracts them, given its higher price? John Bakie finds out
Investing in real assets has become increasingly popular, and debt funds that provide financing for real assets projects are no exception, writes John Bakie.
The debt manager is expanding its LP engagement as it plans to raise additional capital for new and existing strategies.
The mandate will establish an evergreen fund to invest in a wide variety of debt instruments including real assets, SMEs and US and UK mid-market loans.
Falling deal numbers have not hampered the rate of capital deployment which is set to reach record levels.
The firm expects significant reinvestment from existing investors, allowing it to target double the capital raised by its predecessor.
The fund will give institutional investors access to Deutsche Bank-originated senior loans.
Pressure on bank balance sheets and a growing awareness of private debt products is set to boost growth for the asset class in Spain.
Third-quarter fundraising is matching 2018’s figure, but the amount of funds raised has drastically declined.
Management fees drop as North American managers seek to compete for LP allocations with their European counterparts.