PITCHBOOK reports:

Private debt endured 2022’s market upheaval

Private debt assets proved resilient amid a challenging macroeconomic environment in 2022, according to our 2022 Annual Global Private Debt Report. GPs enjoyed robust fundraising momentum through most of the year, despite a short-lived lull in the first quarter. Demand for private debt loans has grown over the past decade.

Takeaways include:

– Funds dedicated to private debt—which includes direct lending and other strategies—raised over $200 billion in 2022.

– Preliminary data shows that a rebound in the performance of private debt funds pulled fund returns out of the negative territory in Q3, making it the third-best-performing private market strategy. 

– The popularity of mezzanine funds grew, driven by high demand for paid-in-kind loans, which help borrowers preserve cash. 

– The total volume of loans in business development company (BDC) portfolios ratcheted up, riding the wave of growth in the private debt market

To download the full report, please register and click here.

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