Chart of the week: Corporate debt acquisition vs. loan origination

Capital committed to corporate debt acquisition funds globally has decreased by 79 percent from Q1 2014 to Q1 2015

 411

Click here for a larger version

In Q1 2014 corporate debt acquisition funds gathered $4 billion of capital from investors globally. In the first quarter of 2015, debt acquisition funds accounted for just $0.85 billion of the $7.91 billion raised by corporate debt funds in total – a 79 percent decrease across the period. Capital committed to corporate loan origination funds also fell from $9.12 billion in Q1 2014 to $7.06 billion in Q1 2015, this was a decrease of 23 percent.

Of the six corporate debt acquisition funds to hold a final close in Q1 2014, the largest was Castlelake III. The global distressed debt vehicle reached $1.4 billion. Three corporate debt acquisition funds held a final close in Q1 2015. The largest of these was the North American focused subordinated / mezzanine fund Vine Media Opportunities – Fund III, which collected $500 million from investors.

However, the largest corporate debt fund currently in market is Oaktree Capital Management’s distressed debt acquisition vehicle, Oaktree Opportunities Fund Xb, targeting $7 billion of investor capital. The largest loan origination fund in market – Oaktree Mezzanine Fund IV – also managed by Oaktree Capital Management, is targeting half as much capital in comparison.