February 2018 Issue

    Under pressure, but bearing up

    Returns for direct lending are predicted to come down slightly over the next 10 years, but the asset class still looks attractive on a relative basis, writes Andrew Hedlund

    Five years of private debt: The new relationship lenders

    PDI celebrates its fifth birthday this month. In that time, private debt funds have made a huge impact, striding further into territory vacated by the banks. Andy Thomson reports

    Vive la difference

    In areas such as size, structure and geographic reach, private debt funds have undergone enormous change over the last five years. Gus Black and Philip Butler of Dechert discuss some of the key changes.

    The European banking purge

    The European banking landscape continues to evolve post the global financial crisis. Paul Burdell of LCM Partners discusses the impact this is having on European credit, NPL investment opportunities and how technological disruption is creating new openings for private debt funds.

    Late-cycle path

    Private real estate debt remains a popular asset class with investors, AXA’s Timothé Rauly told Daniel Cunningham at PDI’s Capital Structure Forum.

    A bet that paid off

    As Ares celebrates its 10th anniversary, senior executives at the firm reflect on how they gambled on the future of a nascent asset class in the wake of the financial crisis. By Andrew Hedlund and Andy Thomson

    Star performer or laggard?

    Confidence in prospects is high, but up to now investors have been more impressed with what other alternative asset classes have delivered.

    Shorter deals, more delayed draws

    Direct lenders and their LPs are flocking to US mid-market private equity, where deal timelines are becoming compressed. Andrew Hedlund reports.

    An enduring relationship

    Despite strong competition and talk of private debt firms looking for alternative niches, the private equity-sponsored market remains by far the strongest source of deals. John Bakie explores why

    Staying out of the bankers’ club

    Amid tight pricing and terms, pan-Asian private credit managers are sourcing dealflow elsewhere, finds Adalla Kim

    China will be ‘put on the spot’

    Do Yoon Lee, CIO of South Korea’s Police Mutual Aid Association, reflects on the GFC and thinks the next downturn may emanate from China.

    Capital keeps flowing, despite the concerns

    Investors have conflicting feelings about private equity and private debt, according to a new survey.

    Why small is beautiful

    British Business Investments has shifted more towards funds operating at the lower end of the lending market in search of better returns, discovers John Bakie