Private Debt Intelligence – 4/18/2022
Private debt displays strong performance
over different time periods
Chart
Download Data
[wpdm_package id=’53970′]
Private debt funds have performed well over the past year, boosted by rising yields across fixed income assets, as evidenced by one-year horizon IRRs for the period ending September 2021. Private debt funds across all strategies returned 18.7%. Distressed debt was the best performing strategy with 18.3% followed by direct lending at 14.8%, while mezzanine posted 4.9%. Shifting to a five-year horizon, private debt funds posted a five-year IRR of 8.4% through September 2021. The top-performing private debt strategy over the period was mezzanine at 9.3%, followed by distressed at 6.0% and direct lending at 5.8%. These IRRs, in an exceptionally low interest rate environment, show why the asset class is raising funds and seeing AUM increase.
(Past performance is no guarantee of future results.)
Contact: Harsha Narayan
harsha.narayan@preqin.com
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.