February 2019 issue

The use of subscription line financing by private debt managers has been an area of controversy, but market experts say its rise is inexorable.

Stephen McKenna, co-head, private debt and capital markets at SANNE, digests some of the biggest developments in 2018 for a maturing private debt industry and what they might mean for the fund services sector in 2019.

As we near the end of the current cycle, the maturing private debt industry hits a crucial stage in its evolution. Cesar Estrada, State Street’s head of product management for private equity and real assets fund services, explains how fund services will play a part.

Increased scrutiny has made cybersecurity more important than ever for fund managers, but vital steps to avoid disaster need not be costly or complex.

From sub-line financing to cybersecurity, there are shifting landscapes that private debt managers will need to be on top of.

More than one-third of investors participating in a PDI LP poll said they plan to increase their allocation to direct lending. They should tread carefully.

In our annual survey of LPs, investors in private debt expressed more scepticism in deal structuring than investors in other alternative asset classes.

Sister title PEI noted some of the key talking points and takeaways from the largest gathering of private equity operations professionals.

Building a good rapport with Korean investors takes time, but the effort may well pay off. Andrew Hedlund reports

Company weaknesses are beginning to be exposed in Europe, so how private debt managers position themselves to take advantage is crucial. PDI discusses key market themes with three senior partners from EQT Credit.

Private equity has been crucial to the evolution of private debt as an asset class, but have the two industries become too friendly? John Bakie explores

The number and size of private debt funds in Europe have grown exponentially over the last few years, with sponsor-led deals often at the heart of many firms’ strategies. But how do private equity firms view private debt funds nowadays? Vicky Meek finds out

Wall Street may face a tricky 2019 but direct lenders should still find dealfow opportunities from all the uninvested money sitting in buyout funds. By Andrew Hedlund

With so much capital raised in 2017, deploying it wisely and avoiding bad terms has become a major focus for managers in the past year.

Despite lower headline numbers, 2018 was a strong fundraising year, with investors increasingly moving towards the biggest funds.

Political and economic concerns will be on investors minds in 2019, but market conditions could begin to favour lenders.

While 2018 was a solid year for private debt managers, the year is ending on a rockier note than it started, leaving question marks in 2019 for credit shops surrounding their portfolios.

Large private debt houses with established brand names have continued to experience fundraising success, but that doesn’t mean there aren’t difficulties ahead, writes John Bakie