Future of Private Debt

Whether it’s evergreen structures, the use of AI or the inroads being made in attracting retail clients via tokenisation, this year’s Future of Private Debt issue reveals significant progress on some age-old themes. Our cover story charts the progress on five innovations we think will revolutionise the asset class. We also look at how to future-proof assets in times of uncertainty and reveal the results of our Fund Leaders Survey 2023, which suggest that private debt remains a favoured asset class for investors.

Our Future of Private Debt report looks at the trends shaping the asset class and features our 2022 list of 40 Rising Stars who have the talent to take the debt industry to new heights over the next decade. Twelve of the list are women, up from six in our previous Rising Stars ranking in 2020 – welcome at a time when LPs are starting to flex their muscles over the lack of diversity in deal teams.

Private debt has emerged over the past decade as one of the most dynamic private markets, largely because of its ability to come up with fresh solutions to emerging issues and investor demands. In this special report, we pick out 20 of the biggest themes emerging in private credit. They encompass areas as diverse as investor demands for a more sustainable approach through to the dizzying pace of technological change. The future really does start here.

We spotlight the emerging talent in the private debt industry with our Rising Stars 2020 list of 40 individuals under the age of 40 that are set to take the debt industry to new heights over the coming decade. Selected from nearly 150 peer nominations and recommendations from senior industry figures, they comprise GPs, LPs, bankers, service providers and lawyers.

Private debt is becoming more diverse. There are more women in the industry – and in more senior positions – and there is more activity away from the traditional North American hotbed. While the US and Canada continue to lead the way, Europe and Asia-Pacific are catching up. Next is to move from a mindset of getting more women into boardrooms to one of fostering greater cognitive diversity and variety of backgrounds.

Rapid technological advancement and global uncertainty – political and economic – are pressing issues for the future of private debt. Predicting outcomes for the industry has never been more challenging, nor more vital.