Debt funds raise $88.5bn in first half of 2021

Fundraising has been slower to recover than deal volumes due to covid-19 restrictions preventing GPs and LPs from meeting.

Private debt funds raised $88.5 billion in the first half of 2021 as fundraising activity remains healthy, according to preliminary figures from the latest Private Debt Investor fundraising report.

Fundraising in the first half was slightly lower than the first half of 2020, which saw $93.2 billion raised. Much of the capital raised for funds closed in 2021 will have been gathered during the covid-19 pandemic when travel restrictions disrupted meetings between GPs and LPs.

Investors are continuing to favour larger funds with just 94 vehicles raised in H1 compared to 250 raised over the whole of 2020. Average fund size reached $942 million, though this is slightly lower than in the first quarter when funds averaged more than $1 billion for the first time. Average fund size in 2020 was $697 million.

While deal transaction volumes have recovered strongly from the pandemic during Q4 2020 and Q1 2021, according to data from Deloitte, fundraising has been slower to recover to pre-pandemic levels.

Look out for the full PDI H1 2021 Fundraising Report due to be published next week for all the details on fundraising during the year.