Private debt investors are “highly” satisfied with the performance of the asset class and the majority are planning to invest more capital in 2017 than the previous year.
Financial information provider Preqin found that in a survey conducted in December last year, over a quarter of private debt investors felt their portfolios exceeded expectations, with only 7% dissatisfied.
While 57% of investors plan to commit more to private debt this year, in the longer term 62% plan to increase their private debt allocation.
According to Preqin, through 2016, 130 private debt fund secured an aggregate $92 billion (€85.5 billion) in investment. This was a slight drop on the $97 billion raised in 2015 but is greater than in any other year since 2008.
Ryan Flanders, head of private debt products at Preqin said that less than half of institutional investors currently allocate to private debt classes.
“In order to ensure the continued growth of the industry, fund managers will have to appeal to new investors,” said Flanders.
Preqin surveyed over a hundred institutional investors for its report.
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