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VOLUME 3, ISSUE 5 JUNE 2018PRIVATE DEBTSPOTLIGHTPRIVATE DEBT IN ASIA: THE NEXTFRONTIER?IN THIS ISSUE60%of Asia-focused funds closed in 2017 met or exceeded theirinitial target size. With this region historically somewhatoverlooked in favour of North America and Europe, wetake a look at the fund managers and investors beginningto turn to Asia-focused private debt.2FEATUREPrivate Debt in Asia:The Next Frontier?Find out more on page 26FEATUREThe European PrivateDebt OpportunityINDUSTRY NEWS8THE FACTSInvestors to9Debtin Europe North-AmericaFocused MezzanineFunds11CONFERENCES14 SampleWatch Private88Europe-focused private debt funds are currently in market,seeking just under 43bn, paving the way for strongfundraising for Europe-focused private debt funds in theyear ahead. In this extract from the Preqin Markets inFocus: Alternative Assets in Europe report, we examine indetail this promising area for private debt fundraising.12All data in thisnewsletter can bedownloaded to Excelfor freeSign up to Spotlight, our free monthlynewsletter, providing insights intoperformance, investors, deals andfundraising, powered by Preqin data:SIGN UPTHE EUROPEAN PRIVATE DEBTOPPORTUNITYFind out more on page 6THE 2018PREQIN SOVEREIGN WEALTH FUND REVIEWJUST RELEASED:THE 2018 PREQIN SOVEREIGNWEALTH FUND REVIEWin association withOrder Your CopyDownload Sample PagesAlt Credit Intelligence European and US Fund Services Awards: Best Data and InformationProvider Africa Global Funds Awards 2016: Best Research and Data Provider The Queen’sAward for Enterprise: International Trade HedgeWeek Global Awards: Best Global HedgeFund Research Provider CAIA Corporate Recognition Awardwww.preqin.com/contact info@preqin.com
PRIVATE DEBT IN ASIA: THE NEXT FRONTIER?PRIVATE DEBT IN ASIA: THENEXT FRONTIER?We take a look at the fund managers and investors turning to opportunities in Asia, analyzing funds closed and currently in market, as well as theinvestors targeting the region.have seen increased fundraising success inrecent years.2017 was a strong year for Asia-focusedprivate debt fundraising, with 15 fundsreaching a final close, raising an aggregate 6.4bn in capital. This is the second highestamount of capital raised targeting theregion to date and resulted in an averagefund size of 427mn. Asia-focused fundsaccounted for 9% of all private debt fundsclosed in 2017, three-percentage pointsFig. 1: Annual Asia-Focused Private Debt Fundraising,2010 - 2018 YTD (As at May 2018)100%90%Aggregate CapitalRaised ( bn)51.04.43.06.46.21.243.12.06%9%2%9%28%24% 32%25%34% 39%60%Asia50%40%30%Rest of WorldEurope64% 68%20%58% 61% 56% 58% 61%52% 50%North America10%00%20102010 2011 2012 2013 2014 2015 2016 2017 2018YTDYear of Final Close201865% 6%13% 6%2017118.823%4%8%20161210151319% 18%20131670%201215No. of FundsClosed80%4% 4% 6%11% 15% 9%7%10%201117Proportion of Funds Closed2520Sixty percent of Asia-focused funds closedin 2017 met or exceeded their initial targetsize including SSG Capital Partners IV, thesecond largest Asia-focused fund to closelast year, securing an aggregate 1.7bn,26% more than its initial target. KnownFig. 2: Private Debt Funds Closed by Primary Geographic Focus,2010 - 20183025higher than in 2016. While still dwarfedby the North America and Europe, Asiafocused fundraising has carved out asignificant niche in the global private debtmarket.2015nstitutional investors in 2018 areincreasing their exposure to privatedebt strategies at a higher rate thanever before, with many looking to bothdiversify their private debt portfolios andfind less competed opportunities. Beyondthe mature and competitive private debtmarkets in North America and Europe,credit markets in Asia offer a relativelyuntapped reserve of opportunity, and withthe recent increase in investor interestin this area, private debt fund managers2014IYear of Final CloseSource: PreqinSource: PreqinFig. 3: Largest Asia-Focused Private Debt Funds Closed, 2017 - 2018 YTD (As at May 2018)FirmFund Size (mn)TypePrimary Geographic FocusFinal CloseDateCITIC Private EquityFunds Management13,300 CNYMezzanineChinaAug-17SSG CapitalManagement1,700 USDSpecial SituationsAsia, China, Greater China,India, IndonesiaAug-17Bain Capital Credit962 USDSpecial SituationsAsiaApr-18Malaysia Debt Ventures4,000 MYRVenture DebtMalaysiaSep-17May-18FundCITIC PE Multi-Strategy FundSSG Capital Partners IVBain Capital Special Situations AsiaMalaysia Debt Ventures Fund 3PAG Asia Capital950 USDDirect LendingAsia, Australasia, Australia,China, Japan, New Zealand,South KoreaSSG CapitalManagement815 USDDirect LendingAsia, China, Greater China,India, IndonesiaAug-17NV Private Equity Fund IIIDominus Investment481,000 KRWMezzanineASEAN, Far East, Indonesia,South Korea, VietnamFeb-17Edelweiss Special Opportunities Fund IIEdelweiss AlternativeAsset Advisors350 USDDirect LendingIndiaMar-17EFA Group152 USDDirect LendingGlobalSep-17Trifecta Capital5,000 INRVenture DebtIndiaMay-18PAG Asia Loan Fund IIISSG Secured Lending Opportunities IIEFA Real Economy Income TrustTrifecta Venture Debt Fund ISource: Preqin2Private Debt Spotlight June 2018 Preqin Ltd. 2018 / www.preqin.com
PRIVATE DEBT IN ASIA: THE NEXT FRONTIER?investors in the fund – which targets highgrade private lending in Greater China,India and Indonesia – include CaliforniaState Teachers’ Retirement System(CalSTRS), San Francisco Employees’Retirement System and Texas PermanentSchool Fund State Board of Elections.There are currently 31 Asia-focusedprivate debt funds in market, seeking anaggregate 11bn in capital. The majority(58%) employ a direct lending strategy,followed by distressed debt and specialsituations (13% each), mezzanine (10%) andventure debt (6%). However, only three ofthe 10 largest Asia-focused funds on theroad will follow a direct lending strategy(Fig. 4). This illustrates that direct lendingvehicles in the region are typically targetingsmaller amounts of capital than funds likedistressed debt and special situations,which typically employ investmentstrategies that require larger bitesizeinvestments. The largest fund in marketis Shoreline Capital’s Shoreline CapitalCNY Fund, seeking CNY 10,000 ( 1.5bn) incapital. The fund will invest in opportunitiesin China, with 70% of capital invested innon-performing assets of banks, loans tolocal government platforms and stateowned enterprise loans.the number of funds that reached a finalclose and capital secured from 2016-2018YTD, it would seem that fund managersexpect institutional investor interest in theregion to continue on an upward growthtrajectory. According to survey results fromPreqin’s H1 2018 Investor Outlook, 30%of investors feel that Asia presents the bestopportunities for investing in private debt(Fig. 6): while this is less than the 44% thatnamed North America, considering therelative fundraising in the two regions overrecent years it shows significant potentialfor growth in Asia.With both the number of funds in marketand aggregate capital sought exceedingMore than 900 investors globally havestated a preference for Asia-focused funds.Fig. 4: Largest Asia-Focused Private Debt Funds in Market (As at May 2018)FirmTarget Size (mn)TypePrimary GeographicFocusShoreline Capital CNY FundShoreline Capital10,000 CNYDistressed DebtChinaCDH Mezzanine RMB Fund VCDH Investments7,000 CNYMezzanineChinaChina, Japan, SouthKoreaFundMBK Partners Special Situations IPiramal India Resurgent FundLending Ark Asia Secured Private Debt Fund ISamena Special Situations Fund IIIAdamas Ping An Opportunities FundAvenue Asia Special Situations Fund VDCP China Credit Fund IIMBK Partners1000 USDSpecial SituationsPiramal Capital1000 USDDistressed DebtIndiaCLSA Capital Partners750 USDDirect LendingASEAN, Australia, FarEast, New ZealandSamena Capital700 USDSpecial SituationsAsia, India, MENA,South AsiaAdamas Asset Management500 USDDirect LendingChinaAvenue Capital Group500 USDDistressed DebtAsia, China, India,IndonesiaDignari Capital Partners500 USDSpecial SituationsGreater China, HongKongOCP Asia500 USDDirect LendingAsiaOrchard Landmark IIISource: PreqinFig. 5: Largest Asia-Based Fund Managers by Aggregate Capital Raised in the Last 10 YearsHeadquartersFund StrategiesTotal Capital Raised inLast 10 Years ( mn)Estimated DryPowder ( mn)PAG Asia CapitalHong KongDirect Lending, DistressedDebt, Special Situations4,2861,474SSG Capital ManagementHong KongDirect Lending, DistressedDebt, Special Situations4,2552,300Beijing, ChinaMezzanine2,8071,253Guangzhou, ChinaDirect Lending, DistressedDebt, Mezzanine, SpecialSituations1,981793Kuala Lumpur,MalaysiaVenture Debt1,682741ChinaSpecial Situations1,57880CDH InvestmentsBeijing, ChinaDirect Lending, SpecialSituations1,509994Everbright Financial Holding AssetManagementBeijing, ChinaSpecial Situations1,30266Seoul, South KoreaMezzanine1,186402Hong KongDirect Lending, DistressedDebt, Special Situations1,094158FirmCITIC Private Equity Funds ManagementShoreline CapitalMalaysia Debt VenturesZhongchen Fund ManagementDominus InvestmentADM CapitalSource: Preqin3Private Debt Spotlight June 2018 Preqin Ltd. 2018 / www.preqin.com
PRIVATE DEBT IN ASIA: THE NEXT FRONTIER?The majority (69%) of these investorsare based in North America, with only12% based in Asia, although with by farthe largest proportion of all investorsbased in North America, this is perhapsunsurprising. Within Asia, Japan accountsfor nearly half of all investor assets undermanagement in the region but only aquarter of the investors. The only otherregion where the proportion of AUM ishigher than the proportion of investors isChina. South Korea is home to 23% of allinvestors in the region and seven of the 10investors with the highest allocations tothe asset class. National Pension Service, apublic pension fund based in South Korea,has the highest allocation to the asset classamong Asia-based investors at 2.9bn.Fig. 6: Investor Views on the Regions Presenting the BestOpportunities for Private DebtAsia-focused dry powder has largely beenon the rise since 2006, and now stands ata record 17bn. With investors hungry fordebt managers to put capital to work, thecapital supply pipeline for growth acrossthe continent certainly shows promise forthe underlying strategies within privatedebt to carve out a better foothold in Asia.Fig. 7: Investors with a Preference for Asia-Focused Private DebtFunds by Location70%59%60%4%Proportion of Investors12%50%North America44%40%30%Europe15%30%AsiaRest of World20%69%10%0%North AmericaEuropeAsiaSource: Preqin Investor Survey, December 2017Fig. 8: Asia-Based Private Debt Investors by LocationFig. 9: Private Debt - Risk/Return by Primary Fund Focus14%23%Proportion ofAsia-Based Investors9%6%8%4% 4% 3%2% 1%4%1%OtherChinaIndiaSouth Korea3%Malaysia13%Taiwan13%Hong Kong16%21%Singapore25%Risk - Standard Deviation of IRR44%Japan50%45%40%35%30%25%20%15%10%5%0%Source: Preqin12%10%North America8%Europe6%Asia4%2%0%9%Proportion ofAsia-Based Investor AUM9%10%10%Return - Median Net IRRSource: PreqinSource: PreqinFig. 10: Largest Asia-Based Private Debt Investors by Allocation to Private DebtFirmNational Pension ServiceTypeHeadquartersAUM ( mn)Current Allocation toPrivate Debt ( mn)Public Pension FundSouth Korea577,8352,942Eastspring InvestmentsAsset ManagerSingapore188,0001,050IIFL CapitalAsset ManagerIndia12,000800KB InsuranceInsurance CompanySouth Korea22,512743Kyobo Life InsuranceInsurance CompanySouth Korea67,202538Public Officials Benefit AssociationPublic Pension FundSouth Korea10,205520Hyundai Marine & Fire InsuranceInsurance CompanySouth Korea30,103229Mirae Asset Life InsuranceInsurance CompanySouth Korea15,989144Asset ManagerSouth Korea464139Insurance CompanyTaiwan82,413137Hana Alternative Asset ManagementShin Kong Life InsuranceSource: Preqin4Private Debt Spotlight June 2018 Preqin Ltd. 2018 / www.preqin.com
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THE EUROPEAN PRIVATE DEBT OPPORTUNITYTHE EUROPEAN PRIVATEDEBT OPPORTUNITYIn this exclusive extract from the forthcoming Preqin Markets in Focus: Alternative Assets in Europe report, we examine the Europe-focusedprivate debt funds by annual fundraising, dry powder and largest funds in market, as well as private debt-backed deals.Europe remains an area of significantattention and interest in the privatedebt space. With the initial growth in theasset class focusing primarily on NorthAmerica, many participants are nowlooking to Europe as the next frontier forsignificant growth. As North Americanregulation loosens, potentially allowing anopportunity for bank lenders to ramp uptheir activity in the mid-market space, theopposite looks to be occurring in Europewith regulation looking likely to tightenand potentially create new opportunitiesand avenues for direct lenders targetingthe region. With macro tailwinds in theregion and a strong legal regime in place,the opportunity set in Europe looks likelyto be strong in the coming years.PRIVATE DEBT FUNDRAISINGEurope-focused private debt managershave seen a slight downtick in fundraisingduring the first quarter of 2018, with fourfunds having reached a final close securingan aggregate 1.9bn (Fig. 1). Compared toQ1 2017, when 16 Europe-focused fundssecured 8.1bn, early figures for the regioncould be considered underwhelming,especially given the record-setting end to2017, in which 14bn was raised across 10private debt funds focused on Europe thatclosed in Q4 2017.Fig. 1: Annual Europe-Focused Private Debt Fundraising by FundType, 2008 - 2018 YTD (As at March 2018)EUROPE-FOCUSED DRY POWDERRecord fundraising levels in 2017 have alsoled to record-high dry powder totalsFig. 2: Europe-Focused Private Debt Dry Powder, 2006 - 201840603550Source: PreqinMar-18Dec-17Dec-160Dec-15Distressed DebtPrivate Debt Fund of FundsVenture DebtDec-14Direct LendingMezzanineSpecial Situations10Dec-132008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTDYear of Final ec-0725Dec-0630Dry Powder ( bn)Aggregate Capital Raised ( bn)With Europe-focused fundraising passing 36bn in 2017, the bar set for managersfocused on the region is quite high, andthe likelihood of private debt fundraisingcontinuing the record-setting pace couldnow be in question for 2018. However,with 88 Europe-focused private debtfunds in market seeking just under 43bncurrently, there is an avenue for strongfundraising in 2018, led by 24bn in capitaltargeted by direct lending managersfocused on the region.Source: PreqinFig. 3: Largest Europe-Focused Private Debt Funds in Market (As at March 2018)FundFirmVintageTarget Size (mn)Fund TypeFund StatusIntermediate Capital Group20184,000 EURMezzanineRaisingOCM European Principal Opportunities Fund IVOaktree Capital Management20163,000 EURDistressed DebtThird ClosePark Square Capital SMBC JVPark Square Capital Partners20173,000 EURDirect LendingRaisingDirect Lending Fund IIIBlueBay Asset Management20182,500 EURDirect LendingRaisingPemberton AssetManagement20172,000 EURDirect LendingRaisingStrategic Value Partners20171,750 USDDistressed DebtSecond CloseTikehau Direct Lending IVTikehau InvestmentManagement20171,200 EURDirect LendingFirst CloseBain Capital Special Situations EuropeBain Capital Credit20181,000 EURSpecial SituationsRaisingEQT20181,000 EURDirect LendingFirst ClosePemberton AssetManagement20181,000 EURSpecial SituationsRaisingICG Europe Fund VIIPemberton European Mid-Market Debt Fund IIStrategic Value Special Situations Fund IVEQT Mid-Market Credit Fund IIPemberton Strategic Credit Opportunities FundSource: Preqin6Private Debt Spotlight June 2018 Preqin Ltd. 2018 / www.preqin.com
THE EUROPEAN PRIVATE DEBT OPPORTUNITYFig. 4: Private Debt-Backed Deals in Europe: Banks vs. Private Debt Firms, 2010 - 2017100%90%19%80%Proportion of Dealsfor Europe-focused funds, with managershaving access to 57bn in commitmentstargeting the region as at March 2018, upnearly 3bn from the end of 2017. Puttingthis record level of capital to work couldbe challenging for managers movingforward, although there is still significantopportunity as borrowers becomeincreasingly comfortable and experiencedworking with direct lenders. However,in light of record fundraising, the smallincreases in dry powder indicate managershave been successfully putting capital towork in Europe, with the proportion ofprivate debt-backed deals in the regionincreasing steadily over ecoms, Media 80Healthcare60Food & Agriculture40Energy & Utilities20ConsumerDiscretionaryBusiness ServicesFranceGermany2018YTDRest of EuropeSource: PreqinPrivate Debt Spotlight June 2018201720172018 YTDUK20162016201120152010201400%7Direct lending is solidly in place as anecessary financing tool for businessesthroughout the continent, as evidencedin the massive fundraising growth seensince 2013 for Europe-focused lenders,having secured 1.9bn in 2018 sofar. Furthermore, the products beingdeveloped as a result of the capital influxin the space has led to greater deal access,with diversity in offerings across debtstrategies. Specialty finance, asset-backedlending and revolving credit facilities haveall evolved in recent years to fit the risk/return profiles of borrowers across thediverse regional opportunities in Europe.201310%33%2017certainly expanded in recent years, assome managers look outside developedEurope in search of relative value.12013%30%20%2016Private Debt Firm201240%7%2015160201160%5%13%2014Fig. 6: Number of Private Debt-Backed Deals in Europe byIndustry, 2010 - 2018 YTD (As at March 2018)201070%29%2013The UK accounted for the largestproportion (38%) of deals across theeurozone in 2017, with France andGermany accounting for the second andthird highest levels of activity in termsof both the number and aggregatevalue of deals in the year (Fig. 5). Withdirect lending having attracted the mostattention among private debt in Europe,the UK seems poised to continue asthe main hub for private debt activity inthe near future. Deal flow for emergingalternative lending markets in Europe hasNo. of DealsProportion of Deals80%22%2012Bank100%25%58%58%56%20%Fig. 5: Private Debt-Backed Deals in Europe by Location,2010 - 2018 YTD (As at March 2018)24%73%65%carved out a robust piece of the market,with regulation trending towards allowingthose managers to continue and increaseaccess to lending both in sponsored andnon-sponsored transactions.DEAL ACTIVITYPrivate debt deal activity in Europe hastraditionally been led by those firms witha combination of knowledge, relationshipsand access to the nuanced differencesbetween countries and regional disparities.Although competition between banksand private debt firms for access tohigh-quality deals has remained stoutcompared to the US, managers have16%42%42%44%70%Source: PreqinIn light of recordfundraising, thesmall increases indry powder indicatemanagers have beensuccessfully puttingcapital to work inEurope90%27%35%Source: Preqin Preqin Ltd. 2018 / www.preqin.com
INDUSTRY NEWSINDUSTRY NEWSIn this month’s Industry News, we profile recent institutional investor commitments to private debt as well as private debt funds in market andrecently closed funds.RECENT INSTITUTIONAL INVESTORCOMMITMENTS TO PRIVATE DEBTFUNDS IN MARKETRECENTLY CLOSED FUNDSCarVal Investors’ CVI Credit Value FundIV reached a final close in May 2018with commitments from Florida StateAs at May 2018, there are a total of 366private debt funds in market seeking anaggregate 168bn in capital. Direct lendingBoard of Administration, ManchesterEmployees Contributory RetirementSystem, Massachusetts Pension ReservesRetirement Board, Minnesota State Boardof Investment, MWRA Retirement System,New Hampshire Retirement System andVenture County Employees’ RetirementAssociation.funds account for 49% of vehicles on theroad and capital targeted, followed bymezzanine strategies, which represent19% of funds and 18% of capital targeted.There have been 41 private debt funds toreach a final close this year as at May 2018,securing an aggregate 38bn in capital.The largest fund to close so far is GSOCapital Solutions Fund III, managed by GSOCapital Partners, which secured 7.4bn atits final close in April 2018. The distresseddebt fund will focus on opportunities inWest Europe and the US.RBL Bank has recently committed INR500mn to Trifecta Venture Debt Fund I, thedebut fund from Trifecta Capital. The fundreached a final close in May 2018, withanother known commitment from SIDBIVenture Capital.The 10 largest funds in market accountfor 26% of total capital targeted withinthe asset class, led by GS MezzaninePartners VII, which is targeting 10bn. Themezzanine fund, managed by GoldmanSachs, secured 730mn at its first close inAugust 2017 and will target opportunitiesacross North America and Europe. Thereare six direct lending, two distressed debtand one mezzanine fund that complete thetop 10.Over half (51%) of funds closed in 2018 sofar are North America focused, followed by39% that are Europe focused and 10% thatare Asia focused. Of the top 10 funds toclose, four are direct lending vehicles andfour are distressed debt vehicles, alongwith one special situations fund and onemezzanine vehicle. AlbaCore Partners I, theonly first-time fund of the top 10, closed inApril 2016 at 1,458mn, achieving 149% ofits initial target.SHARE YOUR NEWSDo you have any news you would like to share with the readers of Spotlight? Perhaps you’re about to launch a new fund, haveimplemented a new investment strategy, or are considering investments beyond your usual geographic focus?Send your updates to spotlight@preqin.com and we will endeavour to publish them in the next issue.8Private Debt Spotlight June 2018 Preqin Ltd. 2018 / www.preqin.com
THE FACTSSAMPLE INVESTORS TO WATCHWe take a look at a sample of investors globally that are looking to commit capital to private debt funds in the coming months.21PORTFOLIO ADVISORSBEL AIR INVESTMENTADVISORSPrivate Equity Fund ofFunds ManagerLocation: Darien, ConnecticutAUM: 23.5bnThe firm is looking to make newcommitments to distressed debt,special situations and mezzaninefunds targeting North America,Europe and Asia.23LOMBARD ODIER DARIERHENTSCHType:Private WealthLocation: Geneva, SwitzerlandAUM:CHF 250bnThe private wealth manager willlook to commit to at least one fundand has a general preference fordirect lending, distressed debt andmezzanine funds with a global reach.Private Debt Spotlight June 2018Type:Private Equity Fund ofFunds ManagerLocation: Madrid, SpainAUM: 5.4bnAltamar is looking to make five orsix senior debt or direct lendingcommitments over the coming yearand plans to deploy 75-150mn.4549ALTAMAR PRIVATE EQUITYType:Type:Private WealthLocation: Los Angeles, CaliforniaAUM: 7.5bnThe firm is looking to commit to oneor two private debt funds over thenext 12 months. It is seeking NorthAmerican opportunities through amix of both existing managers in itsportfolio and managers it has notpreviously worked with.13566CHENGDU INDUSTRIALASSET MANAGEMENTType:Asset ManagerLocation: Chengdu, ChinaAUM:The asset manager plans to invest atleast CNY 10mn in distressed debtfunds targeting China, North Americaand Europe. It is open to investingwith existing managers in its portfolioand managers it has not previouslyworked with.UTSB MANAGEMENTType:Investment BankLocation: Seoul, South KoreaAUM:KRW 36tnThe investment bank is looking tomake investments in direct lendingand mezzanine opportunities andtypically commits KRW 11-33bn( 30mn) per fund. It will considerinvesting with a mix of existingmanagers in its portfolio andmanagers that it has not previouslyworked with. Preqin Ltd. 2018 / www.preqin.com
PREQIN GLOBAL DATA UNDSFUNDS OPEN ,649PRIVATEEQUITY*HEDGE FUNDSREAL ESTATEINFRASTRUCTUREPRIVATE 20,84126,5391,3432,6485631,666ActivePrivate EquityLPsFUNDCOVERAGEPrivate EquityFundsFIRMCOVERAGEActiveHedge FundInvestorsHedgeFundsActiveReal EstateLPsActiveInfrastructureLPs7,343PE Real EstateFunds15,1499,651Private Equity FirmsHedge FundFirmsPE Real EstateFirms6,17018,678HedgeFunds1,873PE RealEstate GCOVERAGEPrivate EquityFundsPrivate EquityFundsBUYOUTDEALS & EXITSCOVERAGE89,018Buyout Deals and ExitsHedgeFunds5,044PE RealEstate FundsVENTURE CAPITAL161,642Venture Capital Dealsand astructureFunds183InfrastructureFundsREAL ESTATE55,947Real Estate DealsFUNDS WITHPERFORMANCEDEALS & EXITS28,469 343,345ActivePrivate DebtInvestorsActiveNatural ResourcesInvestors2,068Private DebtFundsNatural ResourcesFunds1,072Private DebtFirmsNatural ResourcesFirms890582Private DebtFundsNatural ResourcesFunds368268Private DebtFundsNatural ResourcesFundsINFRASTRUCTURE28,224Infrastructure DealsPRIVATE DEBT8,514Private Debt DealsAlternatives Investment ConsultantsCoverage:Funds Terms Coverage: AnalysisBased on Data for AroundBest Contacts: Carefully Selected fromour Database of overConsultants TrackedFundsContacts58118,161 PLUSComprehensive coverage of: Placement Agents Dry Powder Fund Administrators Compensation Law Firms Plus much more. Debt Providers463,226THE PREQIN DIFFERENCE Over 390 research, support and development staffGlobal presence - New York, London, Singapore,San Francisco, Hong Kong, Manila and GuangzhouDepth and quality of data from direct contact methodsUnlimited data downloadsThe most trusted name in alternative assets*Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equitysecondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multimanager funds.2015 Annual CAIA CorporateRecognition Award WinnerAs at 1st June 2018
THE FACTSPRIVATE DEBT IN EUROPEIn an extract from the Preqin Markets in Focus: Alternative Assets in Europe report, we examine Europe-focused private debt fundraising,deals and investorsFig. 2: Europe-Based Private Debt Funds Closed by Proportion ofTarget Size Achieved, 2007 - 2018 YTD (As at March 2018)8.642017100%12%28%33%30%26%17%6% 6%13%101-124%50-99%50%Less than 50%3% 3%Source: PreqinFig. 4: Private Debt-Backed Deals in Europe by Location,2010 - 2018 YTD (As at March 2018)100%5290%24.10.339%34%56%7%40%9% 10% 13%38% 27%10%24%16%6%Private Equity Fund ofFunds ManagerFoundation7%11%8%UKFamily Offices2018 YTD2017201620155-9.9%23%10-14.9%Wealth ManagerBank/Investment Bank7%48%Less than 5%Asset Manager14%France3%2%Insurance Company6%GermanyFig. 6: Europe-Based Institutional Investors in Private Debt byCurrent Allocation (As a Proportion of Total Assets)Public Pension Fund5%9%Source: PreqinPrivate Sector PensionFund8%Rest of Europe13%0%Fig. 5: Europe-Based Institutional Investors in Private Debt byType21%24%38%33% 28% 34% 38%27%Source: Preqin10%40%30%20%Primary Strategy3%7%13%50%40%25% 22% 26% 23% 26%30%2014413%20135.45%16%2012MezzanineDistressed DebtDirect Lending02 0.960%24%20116.370%29%20106 5.9Private DebtFund of Funds1012Venture Debt12Special Situations20AggregateCapital Targeted( bn)80%Proportion of DealsNo. of FundsRaising403044%25%Year of Final CloseSource: PreqinFig. 3: Europe-Based Private Debt Funds in Market by PrimaryStrategy (As at March 2018)5042%25%20%13%17%21%19%33%40%13%40%23%0%Year of Final Close6020%10%1.92018 31%25%30%34%201718.140%22%13%2018 YTD4.9 6.4 3.915.0 13.450%50%25%125% or 2%25%20%201318AggregateCapital Raised( o. of FundsClosed10%15%200843401090%Proportion of Funds Closed48502050522012100%602009Fig. 1: Annual Europe-Focused Private Debt Fundraising,2007 - 2018 YTD (As at March 2018)66%15-19.9%20% or MoreInvestment CompanyOtherSource: Preqin11Private Debt Spotlight June 2018Source: Preqin Preqin Ltd. 2018 / www.preqin.com
THE FACTSNORTH AMERICA-FOCUSEDMEZZANINE FUNDSWe take a detailed look at North America-focused mezzanine funds, closed historically and currently in market.Fig. 1: Annual North America-Focused Mezzanine Fundraising,(As at May 2018)Fig. 2: North America-Focused Private Debt Funds in Market byStrategy (As at May 188.13.04.5175.2739.7392820.62518.24 0.64.102008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTDYear of Final CloseNo. of Funds ClosedAggregate Capital Raised ( bn)10131.5Venture Debt1528.8SpecialSituations192029Private DebtFund of Funds24 3535StrategyAggregate Capital Targeted ( bn)No. of Funds RaisingSource: PreqinSource: PreqinFig. 3: Largest North America-Focused Private Debt Mezzanine Funds Closed in 2018 YTD (As at May 2018)FundKKR Private Credit Opportunities Partners IIFirmTarget Size (mn)Final Size (mn)VintageFinal CloseDateKKR1,200 USD2,240 USD2015Jan-18Merit Capital Partners500 USD536 USD2016Mar-18Sentinel Capital Partners480 USD460 USD2018Jan-18Centerfiel
Adamas Ping An Opportunities Fund Adamas Asset Management 500 USD Direct Lending China Avenue Asia Special Situations Fund V Avenue Capital Group 500 USD Distressed Debt Asia, China, India, . Hana Alternative Asset Management Asset Manager South Korea 464 139 Shin Kong Life Insurance Insurance Company Taiwan 82,413 137 Source: Preqin 44% 59% .
