Global private debt fundraising hits $50.4bn in Q2
Total global private debt fundraising equated to $50.4bn (£39.25bn) in the second quarter of 2024, according to Preqin data.
This put the quarter fourth among the previous eight second quarters and marked a return to more normal levels after a below-average first quarter this year.
However, Preqin noted there was still some ground to make up before the end of 2024 to reach the performance of previous years.
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The private markets data provider’s latest update also revealed that the average size of a closed private debt fund had risen to $1.5bn, the highest value in more than five years.
Preqin said this was driven in part by a drop in the number of funds that closed – just 33 in the second quarter, which was the lowest in at least five years.
“Although we expect some quarter-on-quarter volatility, this points to a continuation of the increased fundraising concentration we have seen, as highlighted in our Global Private Debt Report 2024,” Preqin head of private debt and fees, research insights, RJ Joshua said in the report. “As such, fundraising in the second quarter is less broad-based than in previous quarters that achieved similar levels, and so, more fragile.”
Direct lending was responsible for 88 per cent of second-quarter fundraising, with $44.5bn raised for this strategy.
This was consistent with Preqin’s latest investor survey results, which found that direct lending continues to be investors’ preferred strategy, with interest building steadily over the last five years.
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North America continues to dominate private debt fundraising, with almost $40bn raised for funds focused on this region, representing 79 per cent of total funds raised globally.
This trend was also aligned to the initial findings from Preqin’s upcoming Investor Outlook report, which showed that the US is the most favoured developed market, with 89 per cent of surveyed investors saying it presented the best investment opportunities.
In Europe, the average fund size remained significantly smaller than North America. Among the nine funds raising capital in Europe, average fundraising was $1.1bn apiece, while in North America it was $2.7bn across 15 funds.
The Asia-Pacific region’s share of fundraising remained in single percentage points, up from $0.4bn in the first quarter to $1bn in the second.
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