We bring you the latest version our PDI 100, our ranking of private debt’s top fundraisers based on amount of capital received from investors over a rolling five-year period. This is the second such ranking to be based on 100 entries, having evolved from an original list of 50.
You will also find a separate ranking of assets under management held by US business development companies. This is a ranking we last published in 2018, and which is now back by popular demand.
Below are five of our observations from the PDI 100 and BDC ranking.
1 Ares pulls even further away
Los Angeles-based Ares Management has strengthened its grip as private debt’s leading fundraiser. The firm increased its rolling five-year total by an impressive 25 percent between 2021 and 2022, adding more than $25 billion (the largest amount added by any firm during that period) and taking its five-year total past the $100 billion mark.
Ares demonstrated its ongoing investor appeal in October, when it closed its Ares Special Opportunity II fund on its $7.1 billion hard-cap, beating a target of $4 billion.
In early November, in a third-quarter earnings call, Ares chief executive officer Michael Arougheti revealed the firm was launching fundraisings with a combined target of more than $45 billion over the coming few months.
2 HPS makes its move
New York-headquartered fund manager HPS Investment Partners jumps from sixth in the ranking last year to third this time on the back of a 36 percent increase in funds raised between 2021 and 2022. This translated to almost $17.5 billion in extra capital, taking the firm’s five-year total to more than $66 billion.
In September last year, HPS wrapped up its Specialty Loan Fund V on $11.7 billion, translating to $15.4 billion of investable capital including parallel investment vehicles. “The incredibly strong reception SLF V has received from a diverse group of institutions around the world reinforces the leadership position we have forged within the global private credit marketplace,” said Scott Kapnick, chief executive officer of HPS, at the time.
3 New York at centre of universe
Our list reveals a wide range of host cities when it comes to private debt fundraisers. But there’s one place that stands out. Accounting for five of the top 10 firms and more than 30 of the top 100, New York is the undisputed global champion – home as it is to the likes of Goldman Sachs Asset Management (ranked 2), Blackstone (5) and Apollo Global Management (6).
Even more dominant than New York is the US as a whole, which accounts for two-thirds of the PDI 100 managers. Other key hubs include Los Angeles, Chicago and Boston. Though dwarfed by the US, Europe has plenty of representation in the top 100, with London and Paris in particular at the forefront of fundraising activity.
4 The fundraising boom continues
With nerves jangling over challenging economic and geopolitical factors, there are plenty of market observers who will tell you the next year is fraught with concern for fundraisers. Many LPs are said to be putting commitments on hold, partly out of anxiety over market conditions but also because they find themselves overallocated as a result of public market woes.
Next year’s PDI 100 may therefore paint a somewhat different picture. For now, however, it’s clear forward momentum remains strong. Only 17 of the top 100 fundraisers saw a percentage decrease in their five-year rolling total compared with a year earlier.
5 Blackstone dominates in BDCs
Ares Management makes another strong showing in our ranking of business development company assets under management, coming third with a total of almost $22 billion. However, this is a ranking where the Blackstone brand overshadows its peers – the New York-based alternatives giant boasting more than $59.5 billion of BDC assets. Blue Owl Capital divides the two firms with a total of almost $36 billion.