Chart of the week: Private debt fundraising on the rise in Asia-Pacific

Capital gathered for closed-ended private subordinated and mezzanine debt funds increases by over $3 billion between 2014 and 2015.

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In total, $5.51 billion was collected from the close of 14 private debt vehicles in 2015. Following a decline in aggregate capital raised between 2012 and 2014, fundraising once again increased as the regulatory constraints faced by banks stopped them from lending to smaller companies, causing the private capital market to flourish.

Three strategies were targeted by funds closed in 2015. Most notable of these was subordinated and mezzanine private debt, which gathered $4.24 billion for the asset class by year end. This was over three and a half times the amount collected for the strategy in the previous year. Similarly, fundraising for distressed debt funds and senior debt funds rose by $529.28 million and $404.09 million respectively.

Nine subordinated and mezzanine private debt vehicles held final closes in 2015. CCCC-NSSF Infrastructure Fund was the largest of these, gathering $2.38 billion by final close in November. However, even without the close of the largest private debt vehicle focused on Asia-Pacific since 2011, aggregate capital raised in 2015 would still have surpassed fundraising levels reached over the past four years.