Chart of the week: Region focus of distressed private debt funds

 Distressed debt funds majorly opt for a global approach when choosing a region to invest into


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Although only 30 percent of all distressed debt vehicles closed between 2008 and H1 2015 had a global focus, the $120.6 billion of capital commitments gathered by these funds accounts for 56 percent of the total raised during that period. Out of those funds, 56 percent closed above the $1 billion mark, the biggest being CarVal Investors’ CVI Global Value Fund and Lone Star Fund IX which targeted $8.75 billion and $7 billion respectively and both closed on $7.7 billion.

Almost half of all funds raised between 2008 and H1 2015 have a North American focus, however, the amount they gathered fell to 30 percent of the aggregate amount. To contrast with Global funds, only 20 percent of North-American funds raised more than $1billion, but Oaktree Capital Management’s OCM Opportunities Fund VIIb closed on a record $9.9 billion.

Europe was also a major point of interest, attracting 11 percent of the total capital. Interestingly, 60 percent of the vehicles raising Europe focused funds closed in 2012 or 2013 with a total of $4.2 billion specifically directed towards Southern Europe – Spain, Portugal and Italy. Finally, Asia drew 3 percent of the total investments, with Farallon Capital Management raising five special situations funds summing up to $1.4 billion.