Chart of the week: Global direct lending funds on the rise

Private debt funds with a focus on direct lending have raised more capital in 2015 to date than in 2014

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This week it was reported that the UK Pension Protection Fund (PPF) is planning to invest £400 million in direct lending over the next two years. Following this news, PEI’s Research & Analytics team has looked into closed ended private loan origination fundraising globally.

In 2015, $40.8 billion has been raised to date from the close of 48 private debt vehicles with a direct lending strategy. Although $59.18 billion was raised in 2013 making it the strongest fundraising year ever, 2015’s aggregate capital gathered has already surpassed 2014 fundraising by 21 percent. Corporate originated loan funds accounted for $31.34 billion in 2015 – $10.69 billion more than in 2014.

The largest direct lending fund closed in 2015 so far is Goldman Sachs’ $8 billion corporate loan vehicle, GS Mezzanine Partners VI. At its final close in February, the fund had exceeded its target size by $2 billion. Of the 48 vehicles closed in 2015, 13 gathered over $1 billion each from investors.

There are currently 254 direct lending funds in market or coming to market targeting $112.47 billion. GSO European Senior Debt Fund is the largest with a target of $4.09 billion. The corporate direct lending vehicle, managed by Blackstone, launched in September 2014 and will lend into Western Europe.