Distressed debt and special situations funds show somewhat higher returns than direct lending funds, but carry significantly higher credit risk.
Risk/Return by Strategy (Vintage 2003-2013 Funds)
Source: Preqin Private Debt Online; sphere size represents market capitalization
Latest news
US leveraged loans returns turn negative in October
October 22, 2026
The Bloomberg US Leveraged Loan Index (Ticker: LOAN) has returned -0.26% this month through October 21, reducing its year-to-date return…
M&A activity begins to tick upward
October 22, 2026
In the third quarter of 2026, acquisition-linked loan volume across North America and Europe reached about $47 billion, up from $30.6 billion in Q2 and $29.5 billion a year ago.
