Chart of the week: Half of closed private debt funds hit targets

More closed-ended funds reached or beat their initial target sizes in the first four months of 2016 compared with the same period last year.


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BlackRock Capital Investment Corporation defended what it described as a mixed performance in the first quarter, last week, as the firm reported a 7 percent fall in net asset value.

The firm pointed to legacy investments it inherited when it took over managing the firm formerly known as BlackRock Kelso Capital and said it had originated nearly $100 million for two consecutive quarters.

PDI Research & Analytics has examined how private debt fundraising has fared so far this year and found that 84 percent of funds have either reached or surpassed their target at final close. This compares with 74 percent for the same period in 2015.

A third of all funds closed above target in the first four months of 2016, marginally below the equivalent period last year.

So far in 2016, 43 closed-ended private debt funds have held a final close, almost double the number a year ago. The largest is Blackstone Tactical Opportunities Fund II, which amassed $6.7 billion, $1.3 billion below its initial target. This is still more than double the size of the biggest fund closed in the first four months of 2015 – Ares Management’s $3.3 billion European Loan Programme.