September 2016 Issue

Turmoil in the shipping industry and the prospect of increased regulatory pressure on the banks may present opportunities for debt funds. But investing in this market is not without its icebergs.

The headaches facing today’s private debt fund manager show no signs of easing, but as PDI’s list of the 30 leading firms reveals, raising capital is not one of them.

The PDI 30's leading players profiled.

Public and private BDCs are both dominated by a few firms as new managers struggle to gain scale and others fall prey to consolidation.

Fund manager Pemberton is preparing to make a splash with a number of new strategies for the European market. Symon Drake-Brockman explains why the firm is so confident about the future.

International LPs are piling into US mid-market private debt funds, but are they aware of the risk they are taking?

Having been an early mover into the private debt space, placement agent First Avenue is now on the lookout for niche strategies.

Challenging markets and uncharted territories for fundraising were among the topics at the annual Private Equity Exclusive gathering in Chicago.

Our Germany Forum in Munich was split in half by the Brexit vote, with day two dawning in a changed world.

Significant potential exists for the growth of private debt, say Steve Sterling and Stephan Caron of BlackRock, who invest in the asset class on behalf of BlackRock’s institutional clients globally. But what does it take to cement your reputation in an asset class where competition is intensifying?

Global economic growth may be weak and dealflow down, but investor appetite for US private debt remains strong.

As the private mid-market debt asset class grows, choosing the right lending partnerships and financing diversification are uppermost in the minds of some of the market’s leading operators.

Fundraising remains strong across the board for publicly-traded asset managers with large credit businesses. However, performance is more hit and miss.

After the financial crisis and Dodd-Frank financial reforms, the BDC business boomed. It is now starting to look like a consolidation play.

The likes of county pension schemes are turning to private debt, with niche strategies under increasing scrutiny.

Low expected returns on traditional assets have created unprecedented challenges, but investors can use these conditions to their advantage by applying patience and creativity.

Energy companies are taking a range of approaches to restructuring their debt – from full equitisation to reinstatement of pre-petition debt. But varying circumstances of each debtor means it isn’t one size fits all, write James Sprayregen, Brian Schartz and George Klidonas.

Fund managers increasingly need to show that they can operate across geographies and the capital structure. Ian Fowler of Barings explains why this is so important.

The lower middle market offers opportunity to those who choose their investments carefully. Mitchell Drucker explains how Garrison Investment Group is navigating current market conditions.

David Maki, co-head of real estate debt for North America at Heitman LLC, discusses an opportunity for private real estate debt.

Midstream infrastructure investment has ballooned amid the rapid growth of US shale. Nick Cleary of Hastings Funds Management explains how a range of private credit opportunities have arisen.

The US lender, which has historically focused on subordinated debt largely funded via BDCs, is building its business through geographic expansion, new products, additional senior-level hires and institutional funding sources. PDI  recently caught up with founder Art Penn on some of these moves.

MGG Investment Group’s Kevin F Griffin and Gregory Racz offer insights into the lower mid-market, what makes MGG different, and their views on what is driving the growth of cov-lite lending at this stage in the credit cycle.