Last year was a record year for private debt fundraising and although 2018 fundraising looks slightly lower, we still see a strong demand for this relatively young asset class. Most of this is driven by investors searching for higher risk-adjusted real yield – the holy grail of illiquidity premium – now that traditional fixed income risk-adjusted return is hard to come by in a low interest rate environment.
PDI 50: Where the capital comes from
As more capital floods into private debt than ever before, Christian Allgeier of First Avenue looks at the reasons behind the increase in LP appetite for the asset class and the new areas of investment.
