According to the latest research from Preqin, 42% of PE investors have exposure to private debt, and the proportion is set to increase as more investors consider committing to private debt in the future. About 18% more, of those who have not invested in the category, are now considering gaining exposure to private debt in the near future, demonstrating the growing appetite for these funds.
The trend is driven by the retrenchment of banks from the leveraged loan space and limited activity in the European CLO market has resulted in many companies turning to alternative sources for private debt. Both institutional investors and alternatives managers have identified this as an opportunity. (Image Source: Preqin)