H1 2022 Global Private Debt Report

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How the macro environment is a double-edged sword for private debt

Private debt fundraising has slowed in 2022. While the year ended June 30 is still in line with 2021’s record-setting activity, H1’s total of $82 billion in commitments accounts for less than 40% of that trailing 12-month figure.

The current macro landscape is a double-edged sword for private debt funds, according to our H1 2022 Global Private Debt Report, as floating-rate loans become more lucrative and fixed-rate loans more attractive. Highlights from the report include:

  • Direct lending remains the standout strategy, garnering more than a third of the private debt capital allocated in H1.
  • The private equity market’s growth is expected to spur private debt fundraising, as increasingly large PE deal sizes and purchase price multiples provide opportunities for direct lenders.
  • North America has accounted for more than 88% of the capital raised this year, reclaiming ground from Europe-headquartered funds, which held a 31% share in 2021.
  • The leveraged loans and high-yield bond markets have struggled in 2022, according to LCD, with direct lenders stepping up in both the US and Europe to provide borrowers with liquidity.
Table of contents

Key takeaways 3
Fundraising and overview 4
Spotlight: Leveraged loans and high-yield bonds 9
Private debt performance 12

Read More: H1 2022 Global Private Debt Report

2022-09-27 13:45:35

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