Chart of the week: Opportunities in UK private debt

Investors still see potential in the market, despite a smaller proportion of Western European funds targeting Britain.


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The amount of capital exclusively targeting the UK has remained level over the last 12 months, despite a decline in the number of closed-ended private debt funds focused on the country.

At 28 September, there were 104 vehicles in market targeting Western Europe. Of these, 17 (or 16 percent) were focused exclusively on the UK. This compares with 22 percent at the end of Q3 2015.

Fund managers are currently seeking $8.5 billion for the UK, compared with $8.8 billion a year ago.

Investors may be cautious in the aftermath of the Brexit vote, but the launch of Pemberton Asset Management’s direct lending fund this week, is proof that fund managers still see opportunities in the country. The fund aims to collect £500 million ($647 million; €579 million) to invest in the UK mid-market and has already received commitments from investors such as insurer Legal & General.