Senior debt comprised just one-third of total private credit fundraising in the first half of 2023, its smallest proportion of total fundraising for at least five years. Outstripped by subordinated and mezzanine strategies – albeit in one of the worst fundraising climates for a long time – observers could be forgiven for thinking the popularity of senior, unsubordinated first lien investing is on the wane.
Senior debt ticks the boxes for wary LPs
Investors have good reason for backing senior debt strategies in a volatile environment, despite junior capital being the current fundraising favourite.
