DOWNLOAD: Private debt LPs’ 2019 wish list

LPs plan to maintain their allocations to the asset class and rank a strong GP track record as the most important factor in due diligence.

For 2019, the overarching theme among private debt investors is consistent with the sentiment that has taken hold post-global financial crisis: the asset class provides the potential for solid returns, and limited partners want it to make up an increasing part of their portfolio.

Among the respondents to the PDI Perspectives annual LP survey, 87 percent anticipate private credit will either meet or exceed its relevant benchmark. In addition, while a majority of investors anticipate keeping their allocation the same, more investors do plan to up their exposure than decrease it.

One surprise result showed that direct lending still remains the most popular sub-strategy, even amid the influx of capital that has flowed to senior debt. More than one-third of respondents planning to increase their direct lending allocation.

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