'Huge increase' in currency hedging

In the face of volatility produced by political sentiment, currency hedging is centre stage as GPs seek to eliminate risk and protect returns.

The evidence of growing competition in the private debt asset class is shown by the data. According to PDI figures, the last year has seen $133 billion raised by funds holding a final close – an 8 percent increase on the previous year.

This competition inevitably puts the squeeze on funds, with borrowers able to negotiate better rates and investor returns driven down.