Private Debt Intelligence – 2/10/2020

Private Debt Performance Lags Other Asset Classes

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Private debt funds have experienced the second-lowest spread of returns over the 2007-2016 vintage period among all private capital asset classes, surpassing only natural resources funds. However, private debt also has the lowest risk factor, with the smallest standard deviation in net IRRs of any asset class.

In fact, over the past 10 years, private debt has provided some of the returns of all private capital strategies over a rolling three-year horizon. Given that investors commonly cite high risk-adjusted returns as a key advantage of private debt, this will be of some concern to them, and demonstrates the importance of picking the right fund manager.

Contact: Sital Keshwala
sital.keshwala@preqin.com