Chart of the Week: Debt funds on the rise

More capital has been raised in each year since the financial crisis by funds targeting corporate debt strategies. 


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In the first eleven months of 2013, 82 debt funds held final closes and collected $58.3 billion from investors – the highest in any year post-financial crisis with a month still to run.  EIG Energy Fund XVI, which held a final close at the end of November, is the largest debt fund to close this year to date, collecting $1.75 billion more than its $4.25 billion target.

Twice as much capital was raised in 2012 than in 2009. $44.39 billion was raised on aggregate from 61 funds last year. Apollo European Principal Finance Fund II, Fortress Credit Opportunities Fund III and GSO Capital Opportunities Fund II were the top three funds to close in the year, all by North America-based managers, raising $13.3 billion.

Although not the most popular strategy for private equity LPs, 60 percent of investors indicated that they have an interest in debt funds in PEI’s private equity investor sentiment survey in June this year.  So we should expect to see even more capital raised by debt funds in 2014 and beyond.