Chart of the week: Private debt strategies by fund size since 2008

Private debt funds which raised $1 billion or more primarily targeted distressed situations globally between 2008 and H1 2015


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To capture the trends of the largest vehicles’ strategies closed between 2008 and H1 2015, we compared them to the smaller funds raised during this same period. The aggregated amount raised by funds larger than $1 billion was $356.8 billion, against $200.7 billion for smaller funds.

From the chart it is easy to see that big vehicles were primarily raised for distressed situations. Indeed, distressed debt strategy accounts for 48 percent of all the capital raised against only 21 percent for the smaller funds. Furthermore, 64 percent of the big distressed debt vehicles had a Global remit, and another 27 percent were targeting North America. Between 2008 and H1 2015, Lone Star closed one North American and four global private debt vehicles, totalling $33.3 billion worth of investments into the private real estate debt sector.

According to our data, smaller funds only invested 14 percent of their total capital raised with a Global strategy, while the remaining 86 percent all had a specific region focus. It is the opposite for the larger funds, 58 percent of which had a global appetite.

There was a stronger preference for mezzanine debt strategies amongst smaller funds, with 43 percent of the total capital raised with this investment focus. The amount raised, however, was lower than the bigger sized funds. Unitranche funds and those marked as “Other”, including venture debt, CLOs, funds of private debt funds and royalty financing, are equally distributed between small and large vehicles.