Private debt fundraising hits $90bn

Significant fund closes in the third quarter drive growth in the year-to-date fundraising tally, which already exceeds the full-year 2014 total.

Fundraising for private debt strategies is on track for a record-breaking year, with strong inflows documented in the first three quarters of 2015.

According to data from PDI Research & Analytics, $89.7 billion was raised as of 30 September 2015, putting the total 37 percent higher than the $65.5 billion raised in the first three quarters of 2014, and outstripping the $80.6 billion raised by year-end 2014.

The highest debt fundraising total recorded post-crisis was $104.8 billion in 2013. The total so far this year represents 86 percent of the 2013 figure.

The final tally for this year is on track to surpass the 2013 figure, with scenario analysis from PDI R&A forecasting $120 billion could be closed by debt strategies by year end.

Thirty-three funds held final closes totalling $28.5 billion in the third quarter of 2015, the data show. Fundraising volumes in the first and second quarters stood at $28.5 billion and $32.6 billion.

London-based ICG held the biggest fund closes with its second direct lending fund and fifth mezzanine fund raising €3 billion each. AXA closed its commercial real estate debt fund CRE Senior 9 on €2.9 billion while Ardian raised €2 billion for its third generation private debt fund.

Macquarie Group hauled £739 million for its infrastructure debt strategy MIDIS. The largest private debt fund to close in the US was distressed strategy Castlelake IV on $1.9 billion.

Senior debt origination beat other strategies solidly to haul almost 35 percent of the total raised in the third quarter. Unitranche, also a first-lien debt origination strategy, accounted for 11.8 percent.

Fundraising for distressed debt represented 15.4 percent of the total figure for the third quarter, while CLOs stood at 12.6 percent.

 *Figures are correct as at time of publication and could increase by up to 15 percent, based on further information at a later date.