Private Debt Intelligence – 10/26/2020

Private Debt Performance

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Private debt has proven to deliver stable returns in the longer-term (three years plus). Across all strategies, 5-years to March horizon IRRs, mezzanine funds have the strongest returns (7.6%), making the overall private debt returns of 5.1%. But, over one-year, private debt returns have suffered. In the year to March 2020, private debt overall generated a return of -5.4%, similar with the -4.2% for direct lending funds. In contrast, distressed debt experiences the worst performance over this same period, -10.0% in the year to March 2020. However, over the three-year time, all private debt returns are positive, generating returns of 3.9%. Among all strategies, mezzanine is the one with the strongest returns in all time frames.

Contact: Maria Zapata
maria.zapata@preqin.com