Market mood

Investors remain bullish on private debt.

It can be easy to get caught up in negativity when you’re thinking about making best use of investors’ money, but it’s worth remembering the positives.

For debt investors, concerns about weaker terms and covenants, excessive dry powder and a potential lack of deal sourcing opportunities have been growing themes in the industry.

But LPs don’t seem to be too badly affected by this wave of negativity according to data from Intertrust.

More than 35 percent expect their private debt allocations to grow, while more than 60% believe the private debt market is set to expand in the next twelve months, with 21% expecting significant growth. Investors seem to have high hopes for the asset class.