Chart of the week: Europe prefers its own debt

Only 17 percent of private debt funds closed by European managers have focused on regions outside the continent.

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Amid Brexit uncertainty, one thing is clear: European managers prefer European debt.

Since 2010, a total of 203 funds managed by Europe-headquartered fund managers have closed, amassing $106 billion. Of those funds, 83 percent stayed in Europe, highlighting how interdependent the continent’s private debt market is.

The eight percent of funds focused on the Americas also show a strong preference for debt originating in more developed markets. Only a small fraction of the $5.1 billion committed  – $435 million – has been earmarked for Latin American debt opportunities. And only three percent of funds closed since 2010 have focused on Asia-Pacific, the Middle East and Africa.

The largest European private debt fund manager, in terms of capital raised for funds closed since 2010, is Intermediate Capital Group. It has amassed a staggering $16 billion, all focused on European opportunities.