Chart of the week: Senior and subordinated debt take a knock

 After an encouraging 2015, both strategies have seen a fall in fundraising.


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Nine months into the year, fundraising for both senior and subordinated private debt has failed to match the same period last year – trailing by $11 billion and $7 billion respectively.

Intermediate Capital Group’s Senior Debt Partners II was the largest senior debt fund to close in Q3 2015 at over $3 billion, while the largest in Q3 this year was Tikehau Group’s Direct Lending III, which raised $840 million.

The largest subordinated/mezzanine fund to close in Q3 2016 – the $4.5 billion Blackstone Real Estate Debt Strategies II – outstripped its Q3 2015 counterpart, the $800 million Permira Credit Solutions II.

In spite of the disappointing start for both strategies, funds in market such as Blackstone’s Capital Opportunities Fund III and GSO European Senior Debt Fund, aiming to amass over $6 billion and $3 billion respectively, look set to push fundraising figures closer to previous years.