PRIVATE DEBTSPOTLIGHT · 2017. 11. 30. · PRIVATE DEBTSPOTLIGHT. VOLUME 2, ISSUE 8 DECEMBER 2017....

PRIVATE DEBT

SPOTLIGHTVOLUME 2, ISSUE 8 ■ DECEMBER 2017

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IN THIS ISSUE

FEATURE Funds in Market

2

FEATUREManagement Fees

5

INDUSTRY NEWS 6

THE FACTS■Leading Fund Administrators ■ Leading Fund

Auditors■ Leading Law Firms

7

8

9

CONFERENCES 10

FUNDS IN MARKET324A record 324 private debt funds are currently in market, seeking a combined $153bn in capital commitments. In this feature we put these funds under the microscope to gauge where this capital is headed.

Find out more on page 2

MANAGEMENT FEESAverage management fees for private debt funds have been on a downward trajectory since the highs for vintage 2013 funds, dropping to a mean of 1.52% for vintage 2017 funds. Here we provide the latest figures and trends.

Find out more on page 5

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FUNDS IN MARKET

© Preqin Ltd. 2017 / www.preqin.com2 Private Debt Spotlight | December 2017

FUNDS IN MARKETWith 2018 just around the corner, we take a look at the private debt funds currently in market by target size, geographic focus and time spent on the road.

As investors search for yield and greater portfolio diversification, it is fitting to see an uptick in private debt offerings in market looking to attract investor commitments. As at November 2017, there are a record 324 private debt funds in market seeking a combined $153bn in capital commitments (Fig. 1). This represents a 12% increase in the number of funds raising capital and a 21% rise in targeted capital compared with the beginning of 2017.

Over a third (104) of the vehicles on the road are being raised by first-time private debt managers, which can be attributed to the growth of the asset class and the increase of traditional private equity firms raising their debut private debt fund as they look to gain a foothold in an asset class that is increasingly being considered by a broad range of institutional investors. Collectively, these first-time funds are seeking $26bn.

CAPITAL TARGETED BY INVESTMENT STRATEGYDirect lending leads the way in terms of both number of funds (152) and aggregate capital targeted ($63bn), representing almost half of the funds being raised and 41% of total capital sought by private debt funds. Mezzanine funds represent the next largest number of funds in market, but only account for 15% of total targeted capital. Nearly half of the capital targeted by mezzanine funds is accounted for by GS

Fig. 3: Largest Private Debt Funds in Market (As at November 2017)

Fund Firm Target Size (bn) Fund Type Geographic Focus

3G Special Situations Fund V 3G Capital 10.0 USD Special Situations North America

GS Mezzanine Partners VII Goldman Sachs Merchant Banking Division 10.0 USD Mezzanine North America

GSO Capital Solutions Fund III GSO Capital Partners 6.5 USD Distressed Debt North America

Apollo European Principal Finance Fund III Apollo Global Management 4.0 USD Distressed Debt Europe

Park Square Capital SMBC JV Park Square Capital Partners 3.4 EUR Direct Lending Europe

OCM European Principal Opportunities Fund IV Oaktree Capital Management 3.3 EUR Distressed Debt Europe

Steadfast Alcentra Global Credit Fund Alcentra Group 3.0 USD Direct Lending North America

Ares Private Credit Solutions Ares Management 2.5 USD Direct Lending North America

CVI Credit Value Fund IV CarVal Investors 2.0 USD Distressed Debt North America

KKR Direct Lending III KKR 2.0 USD Direct Lending North America

Source: Preqin Private Debt Online

172

77

3342

94

39

11 80

20

40

60

80

100

120

140

160

180

200

NorthAmerica

Europe Asia Rest of World

No. of FundsRaising

Aggregate CapitalTargeted ($bn)

Source: Preqin Private Debt OnlinePrimary Geographic Focus

Fig. 2: Private Debt Funds in Market by Primary Geographic Focus (As at November 2017)

152

45

10

62

3619

63

38

2

23 24

20

20

40

60

80

100

120

140

160

Dire

ctLe

ndin

g

Dis

tres

sed

Deb

t

Fund

of F

unds

Mez

zani

ne

Spec

ial

Situ

atio

ns

Vent

ure

Deb

t

No. of FundsRaising

Aggregate CapitalTargeted ($bn)

Source: Preqin Private Debt OnlineFund Type

Fig. 1: Private Debt Funds in Market by Fund Type (As at November 2017)

FUNDS IN MARKET


Mezzanine Partners VII, which is targeting $10bn. Despite distressed debt comprising just 14% of the total number of funds in market, these funds are seeking $38bn, a quarter of the targeted total capital. The average target size for distressed debt funds is $758mn compared to $391mn and $248mn for direct lending and mezzanine strategies respectively. The average size of special situations vehicles is also noteworthy at $510mn.

GEOGRAPHIC FOCUSThere are currently 172 North America-focused funds in market, targeting an aggregate $94bn (Fig. 2); it remains the most sought-after region in terms of both number of funds and aggregate capital targeted. Seventy-seven funds in market have a primary focus on Europe, targeting a total of $39bn (€35bn). Not much has changed for the region, as this is only a slight increase from the 73 funds that targeted $33bn (€30bn) in January 2017. There are 33 Asia-focused funds in market, seeking a collective $11bn, while 42 Rest of World-focused funds are currently seeking

an aggregate $7.8bn. This represents a 50% increase in the number of Rest of World-focused funds raising capital compared to the start of 2017. It is also more than double the amount of targeted capital at that time ($3.0bn).

MANAGER EXPERIENCEThe private debt market is still in an expansionary stage, as evidenced by 53% of funds in market being a manager’s first or second debt fund. In addition, only 9% of debt funds in market are seeking $1bn or more (Fig. 4), compared to 17% of private equity funds for example.

However, experienced debt managers with track records are able to enter the market with sizeable offerings. The 10 largest funds in market, as seen in Fig. 3, make up 31% of total capital sought by private debt funds ($47bn). The top two funds are each seeking $10bn in capital for special situations and mezzanine strategies. 3G Special Situations Fund V would be the largest special situations fund to close if its target is reached, potentially surpassing

the current record of $5bn, which is held by 3G Capital’s vintage 2014 special situations fund. GS Mezzanine Partners VII would be the second largest mezzanine fund closed if the target of $10bn is reached. The vehicle is part of Goldman Sachs Merchant Banking Division’s series of mezzanine funds, which also raised the $13bn GS Mezzanine Partners V fund.

OUTLOOKWith 324 private debt funds in market as at November 2017, targeting an aggregate $153bn, there are plenty of opportunities for institutional investors to deploy capital. The asset class continues to flourish, with LP appetite for private debt exposure throughout the risk spectrum leading fund managers to launch new and diversified funds. Due to the maturity of private debt in North America, the region will likely remain the focus of the largest number of funds in market, as well as the largest amount of capital being targeted.

11% 8% 12%

33%24%

37%

20%

12%

24%

12%

20%

8%

25%36%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Funds First-Time Funds

Non-First-TimeFunds

More than 24Months

19-24 Months

13-18 Months

7-12 Months

1-6 Months


Prop

ortio

n of

Fun

ds

Fig. 5: Time Spent on the Road by Private Debt Funds in Market (As at November 2017)

18%

29%

24%

20%

9%

Less than $100mn

$100-249mn

$250-499mn

$500-999mn

$1bn or More


Fig. 4: Private Debt Funds in Market by Target Size(As at November 2017)

PRIVATE DEBT ONLINE

Private Debt Online is the leading source of data and intelligence on the growing private debt industry and tracks all aspects of the asset class, including fund managers, fund performance, fundraising, institutional investors and more.

Constantly updated by our team of dedicated researchers, Private Debt Online represents the most complete source of industry intelligence available today, with global coverage and all fund managers and investors profiled.

Get in touch today to arrange a demo of Private Debt Online: : [email protected] | : www.preqin.com/privatedebt

www.preqin.com/privatedebtwww.preqin.com/privatedebtwww.preqin.com/privatedebtmailto:[email protected]/privatedebt

PREQIN GLOBAL DATA COVERAGE

+PLUS

Comprehensive coverage of:

+ Placement Agents + Dry Powder+ Fund Administrators + Compensation+ Law Firms + Plus much more...+ Debt Providers

THE PREQIN DIFFERENCE+ Over 390 research, support and development staff + Global presence - New York, London, Singapore, San Francisco, Hong Kong, Manila and Guangzhou+ Depth and quality of data from direct contact methods+ Unlimited data downloads+ The most trusted name in alternative assets

*Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equity secondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multi-manager funds.


PRIVATE EQUITY* HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT

NATURALRESOURCES

INVESTORCOVERAGE

6,848Active

Private Equity LPs

5,256Active

Hedge Fund Investors

6,062Active

Real Estate LPs

3,215Active

InfrastructureLPs

3,048Active

Private Debt Investors

2,966Active

Natural Resources Investors

FUNDCOVERAGE

18,213Private Equity

Funds

24,751Hedge Funds

6,756PE Real Estate

Funds

1,238Infrastructure

Funds

2,407Private Debt

Funds

1,823Natural Resources

Funds

FIRMCOVERAGE

12,279Private Equity Firms

9,109Hedge Fund

Firms

4,399PE Real Estate

Firms

534Infrastructure

Firms

1,550Private Debt

Firms

1,013Natural Resources

Firms

PERFORMANCECOVERAGE

5,960Private Equity

Funds

17,507Hedge Funds

1,736PE Real

Estate Funds

247Infrastructure

Funds

820Private Debt

Funds

516Natural Resources

Funds

FUNDRAISINGCOVERAGE

2,087Private Equity

Funds

15,668Hedge Funds

1,173PE Real

Estate Funds

176Infrastructure

Funds

367Private Debt

Funds

369Natural Resources

Funds

Alternatives Investment Consultants Coverage:

588Consultants Tracked

Funds Terms Coverage: Analysis Based on Data for Around

16,888Funds

Best Contacts: Carefully Selected from our Database of over

428,355Contacts

2015 Annual CAIA Corporate�e�o�ni� on Award Winner

As at 1st November 2017

ALTERNATIVES COVERAGE

FIRMS FUNDS FUNDS OPEN TO INVESTMENTINVESTORS

MONITOREDFUNDS WITH

PERFORMANCE DEALS & EXITS

28,874 51,215 18,946 14,946 26,798 297,257

DEALS & EXITSCOVERAGE

BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE PRIVATE DEBT

80,351Buyout Deals and Exits

145,592Venture Capital Deals

and Exits

45,169Real Estate Deals

26,145Infrastructure Deals

7,066Private Debt Deals

MANAGEMENT FEES

Private Debt Spotlight | December 20175 Preqin Ltd. 2017 / www.preqin.com

MANAGEMENT FEESThe 2017 Preqin Private Capital Fund Terms Advisor compiles data from over 3,300 private capital funds to provide detailed insight into fund terms and conditions within the industry. Here we look at private debt management fees and analyze the current trends.

Average management fees for private debt funds are at their lowest point across the last 10 vintage years, with the median for vintage 2017 funds at 1.50%, compared to 1.75% for vintage 2016 funds. Downward pressure on fees has been a theme across alternatives for years, as investors continue to push for greater alignment of interests with their fund managers. Management fees for private debt vehicles have traditionally ranged from 1% to over 2% within the investment period and tend to lower thereafter, as deployment costs are offset by the more predictable costs of fund monitoring and administration.

As seen in Fig. 1, both mean and median management fees for private debt funds have been moving down since the highs for vintage 2013 funds, dropping to a mean of 1.52% for 2017 vintage funds. This could be a response to more and more managers launching vehicles in recent years, combined with the increasingly efficient practices and lending platforms in place to help keep costs low and preserve spreads.

Fig. 2 shows average management fees for all private debt strategies for vintages 2008-2017 combined, illustrating the fee gap between direct lending and the other major private debt strategies which typically carry equity components.

Direct lending funds, which typically account for the largest number of funds in market and aggregate capital targeted, tend to offer the lowest average fees, with a mean of 1.57% and a median of 1.50%. Direct lenders generally offer lower targeted returns than distressed debt or mezzanine managers, which can command a more sizeable premium for management.

Venture debt funds have the highest mean and median management fees over the vintage years examined, while special situations funds typically charge a median of 2.00%. Distressed debt and mezzanine funds of vintage 2008-2017 both share a median of 1.75%.

It is likely that management fees will continue to see contraction in the near term, as competition for institutional

capital remains high among lenders of similar strategies. However, manager specialization in certain industries or regions could see these specialists able to hold off fee contraction due to increased demand for their particular expertise.

AVERAGE INVESTMENT PERIOD MANAGEMENT FEE OF PRIVATE DEBT FUNDS (VINTAGE 2008-2017 FUNDS

CLOSED)

Mean Median

1.80%

1.75%

1.57%1.82% 1.89% 1.86%

2.30%

1.50%1.75% 1.75%

2.00%

2.50%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

DirectLending

DistressedDebt

Mezzanine SpecialSituations

Venture Debt

Mean Median

Source: The 2017 Preqin Private Capital Fund Terms Advisor

Prop

ortio

n of

Fun

ds

Fig. 2: Average Investment Period Management Fee of Private Debt Funds by Fund Type (Vintage 2008-2017 Funds Closed)

1.81% 1.76% 1.80%1.70%

1.79%2.07%

1.80% 1.79%1.76%

1.52%

2.00%

1.75%

1.88%

1.75%1.75%

2.00%2.00%

1.75%1.75%

1.50%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mean Median

Source: The 2017 Preqin Private Capital Fund Terms Advisor

Fig. 1: Average Investment Period Management Fee of Private Debt Funds by Vintage Year

Vintage Year Fund Type

Inve

stm

ent P

erio

d M

anag

emen

t Fee

www.preqin.com/fta

INDUSTRY NEWS


INDUSTRY NEWSIn this month’s industry news, we examine private debt deal activity, recently closed funds and investor mandates.

Do you have any news you would like to share with the readers of Spotlight? Perhaps you’re about to launch a new fund, have implemented a new investment strategy, or are considering investments beyond your usual geographic focus?

Send your updates to [email protected] and we will endeavour to publish them in the next issue.

SHARE YOUR NEWS

$2.5bnwas secured by Glendon

Opportunities Fund 11, the largest distressed debt fund

closed in Q4 and the third largest in 2017.

$63bnAggregate capital targeted by direct lending funds in market, the most of any individual debt

strategy.

$1.2bnAverage target size of

distressed debt funds in market focused on Europe, the largest for any fund strategy or region.

16%of total capital targeted by

private debt funds in market is sought by special situations funds, of which there are 37.

At the midpoint of Q4 2017, Private Debt Online has tracked 68 private debt deals completed globally since the start of the quarter. There have been a total of 630 debt financing deals recorded in 2017 YTD, with an aggregate deal value of $86bn, including a total debt-issued value of $31bn.

According to Preqin’s private debt fund manager survey conducted in November 2017, deal pricing and deal flow are expected to be the two largest challenges facing the industry in the next 12 months, as managers are feeling pressure to put large stores of dry powder to work in the year ahead. Additionally, nearly 40% of managers suggest that lending terms have become more borrower friendly in 2017 versus 2016.

PRIVATE DEBT DEAL ACTIVITY RECENTLY CLOSED FUNDS

Private debt funds continue to see more investor attention than ever before. Here, we take a look at a selection of recent investor updates from Private Debt Online:

■ KGAL Real Investment is considering investing in private debt in the next 12 months, with a focus on aviation finance. The company is based in Germany and currently has €21.5bn in AUM.

■ ABL Life Insurance, based in South Korea, will consider gaining exposure to private debt via separate accounts in the next 12 months.

■ Previndai, the €10bn Italy-based public pension fund, is considering investing in private debt funds in the next 12 months as part of its asset allocation strategy. Previndai has not yet set allocations or an investment strategy.

■ Credit Suisse Pension Fund will be investing in private debt in the next 12 months. It plans to invest with both new and existing managers.

At least 17 private debt funds have held an interim or final close in Q4 2017 as at 8 November 2017, with the largest known fund closure being HPS Specialty Loan Fund 2016, a direct lending fund which hit its hard cap of $4.5bn in October 2017. The vehicle will focus on opportunities in North America and Europe, and has issued $363mn in known debt.

Including HPS, there have been four fund closures in the quarter of more than $1bn, with CVI Credit Value Fund IV from CarVal Investors securing more than $2.3bn at its first close. At the other end of the fund size spectrum, first-time debt manager Turning Rock Partners has held a first close on $4mn for Turning Rock Fund I, which is seeking distressed and illiquid opportunities in the US.

One venture debt fund has closed recently: Multiplier Capital’s second fund, Multiplier Capital II, has secured $266mn at its final close and will seek opportunities in growth industries, with a particular focus on digital media, e-commerce, consumer web applications and cybersecurity.

INVESTOR MANDATES

www.preqin.com/privatedebtwww.preqin.com/privatedebtwww.preqin.com/privatedebtwww.preqin.com/privatedebthttps://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=62505&src=9https://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=62505&src=9https://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=75002&src=9https://www.preqin.com/user/pd/fundmanagers/pd_fundmanagers_fundmanagerprofile.aspx?firmid=14098&src=9https://www.preqin.com/user/pd/fundmanagers/pd_fundmanagers_fundmanagerprofile.aspx?firmid=14098&src=9https://www.preqin.com/user/pd/fundmanagers/pd_fundmanagers_fundmanagerprofile.aspx?firmid=247253&src=9https://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=75940&src=9https://www.preqin.com/user/pd/fundmanagers/pd_fundmanagers_fundmanagerprofile.aspx?firmid=103079&src=9https://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=64874&src=9https://www.preqin.com/user/pd/funds/pd_funds_fundprofile.aspx?fundid=64874&src=9https://www.preqin.com/user/pd/investors/pd_investors_investorprofile.aspx?firmid=7679&src=9https://www.preqin.com/user/pd/investors/pd_investors_investorprofile.aspx?firmid=248475&src=9https://www.preqin.com/user/pd/investors/pd_investors_investorprofile.aspx?firmid=223052&src=9https://www.preqin.com/user/pd/investors/pd_investors_investorprofile.aspx?firmid=6982&src=9mailto:[email protected]

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THE FACTS


LEADING FUND ADMINISTRATORS

Fig. 2: Prominent Fund Administrators Servicing Private Debt Funds by Fund Size, Funds Closed 2015-2017

Less than $100mn $100-499mn $500-999mn $1bn or More Abax Corporate Services Citco Fund Services Gen II Fund Services, LLC Citco Fund Services

Aztec Group Citi Fund Services SEI Investments JP Morgan Fund Services

BNP Paribas Securities Services Gen II Fund Services, LLC SS&C GlobeOp SEI Investments

SS&C GlobeOp PEF Services State Street SS&C GlobeOp

Zook Dinon SS&C GlobeOp U.S. Bancorp Fund Services State Street


Fig. 3: Prominent Fund Administrators Servicing Private Debt Funds by Fund Manager Location, Funds Closed 2015-2017

North America Europe Asia & Rest of World

Gen II Fund Services, LLC Alter Domus Alter Domus

SEI Investments BNP Paribas Securities Services Cim Fund Services

SS&C GlobeOp CACEIS Computer Age Management Services

State Street Sanne Group Langham Hall UK Services

U.S. Bancorp Fund Services SS&C GlobeOp State Street


We take a look at the prominent fund auditors servicing private debt funds and sample assignments.

Fig. 1: Prominent Fund Administrators Servicing Private Debt Funds, Funds Closed All-Time

Firm Headquarters No. of Known PD Funds Sample Assignments

SS&C GlobeOp Windsor, US 77 OSP Value Fund II (Distressed Debt, $600mn); Innovatus Flagship Fund I (Direct Lending, $750mn)*

State Street Boston, US 54 Carlyle Strategic Partners IV (Distressed Debt, $2.5bn); European Middle Market Private Debt Fund (Direct Lending, €750mn)*

Citco Fund Services New York, US 40 Benefit Street Partners Special Situations Fund (Distressed Debt, $750mn); Crayhill Principal Strategies Fund (Special Situations, $700mn)*

SEI Investments Oaks, US 35 CapitalSpring Investment Partners V (Direct Lending, $725mn); 3G Special Situations Fund V (Special Situations, $10bn)*

J.P. Morgan Fund Services New York, US 33 Cerberus Institutional Partners VI (Distressed Debt, $4bn); Pemberton UK Mid-Market Direct Lending Fund (Direct Lending, £500mn)*

U.S. Bancorp Fund Services Milwaukee, US 27 THL Credit Direct Lending Fund III (Direct Lending, $511mn); Capitala Private Credit Fund V (Direct Lending, $350mn)*

Northern Trust Fund Administration Chicago, US 25 VPC Specialty Finance Fund II (Direct Lending, $500mn)*; RPK Capital Aviation Investment Fund I (Special Situations, $300mn)*

PEF Services West Orange, US 17 Enlightenment Capital Solutions Fund II (Direct Lending, $147mn); Pelham S2K SBIC (Mezzanine, $105mn)*

BNY Mellon New York, US 14 TGAM Churchill Middle Market Senior Loan Fund (Direct Lending, $500mn)*; Izurium European Credit Fund (Direct Lending , €150mn)

Gen II Fund Services, LLC New York, US 14 Solace Capital Partners Fund (Special Situations, $576mn); VSS Structured Capital III (Mezzanine, $300mn)*

*Denotes target size. Source: Preqin Private Debt Online

THE FACTS


Fig. 1: Prominent Fund Auditors Servicing Private Debt Funds, Funds Closed All-Time

Firm Headquarters No. of Known PD Funds Sample Assignments

PricewaterhouseCoopers London, UK 228 3G Special Situations Fund V (Special Situations, $10bn)*; Cerberus Institutional Partners VI (Distressed Debt, $4bn)

KPMG Amsterdam, Netherlands 174Varde Fund XII (Distressed Debt, $1.74bn); Crestline Opportunity Fund III (Special Situations, $1.25bn)*

EY London, UK 170 Carlyle Strategic Partners IV (Distressed Debt, $2.5bn); Capzanine IV (Private Debt) (Direct Lending, €800mn)*

Deloitte New York, US 127 Riverside Strategic Capital Fund I (Direct Lending, $418mn); European Middle Market Private Debt Fund (Direct Lending, €750mn)*

RSM Chicago, US 79 GCG Investors IV (Mezzanine, $275mn); Medley Opportunity Fund III (Direct Lending, $800mn)*

Grant Thornton Chicago, US 29 PA Direct Credit Opportunities Fund II (Mezzanine, $740mn); European Distressed Fund III (Distressed Debt, €500mn)*

EisnerAmper New York, US 24 AMERRA Agri Fund III (Direct Lending, $820mn); Sandton Credit Solutions Fund IV (Special Situations, $600mn)

BDO London, UK 23 Prospect Credit Strategies Fund (Direct Lending, $1bn)*; Brevet Direct Lending - Intermediate Duration Fund (Direct Lending, $500mn)*

CohnReznick New York, US 15 Ironwood Mezzanine Fund IV (Mezzanine, $400mn)*; Closed Loop Fund (Direct Lending, $150mn)*

Crowe Horwath New York, US 14 H.I.G. Bayside Loan Opportunity Fund IV (Distressed Debt, $1.1bn); Peninsula Fund VI (Mezzanine, $402mn)

*Denotes target size. Source: Preqin Private Debt Online

LEADING FUND AUDITORS

4%

14%

8%

12%

4%

20%

27%

30%

38%

14%

27%

12%

13%

18%

19%

42%

0% 20% 40% 60% 80% 100%

Less than $100mn

$100-499mn

$500-999mn

$1bn or More

Deloitte EY KPMG PricewaterhouseCoopers


Proportion of Funds Using a Big Four Auditor

Fig. 2: Market Share of Big Four Fund Auditors Servicing Private Debt Funds by Fund Size, Funds Closed 2016-2017

20%

5%

11%

14%

22%

40%

26%

16%

10%

38%

19%

0% 20% 40% 60% 80% 100%

Asia & Rest of World

Europe

North America

Deloitte EY KPMG PricewaterhouseCoopers


Proportion of Funds Using a Big Four Auditor

Fig. 3: Market Share of Big Four Fund Auditors Servicing Private Debt Funds by Fund Manager Location, 2016-2017

Using data from Preqin’s Private Debt Online, we examine the leading fund auditors currently servicing private debt funds.

www.preqin.com/privatedebt

THE FACTS


LEADING LAW FIRMS

Fig. 1: Leading Law Firms in Private Debt Fund Formation

Firm Headquarters

No. of Known PD Funds Closed in

2017

Aggregate Capital Raised by Known

PD Funds Closed in 2017 ($bn)

Sample Private Debt Funds Closed in 2017

Fried Frank New York, US 3 9.8 HPS Specialty Loan Fund 2016 (Direct Lending, $4.5bn); Permira Credit Solutions Fund III (Direct Lending, €2.9bn)

Schulte Roth & Zabel New York, US 4 9.0Cerberus Institutional Partners VI (Distressed Debt, $4bn); Benefit Street Partners Special Situations Fund (Distressed Debt, $750mn)

Ropes & Gray Boston, US 5 5.1Twin Brook Capital Partners Direct Lending Fund II (Direct Lending, $1.6bn); PIMCO Corporate Opportunities Fund II (Distressed Debt, $1.5bn)

Simpson Thacher & Bartlett New York, US 2 3.2PA Direct Credit Opportunities Fund II (Mezzanine, $740mn); Carlyle Strategic Partners IV (Distressed Debt, $2.5bn)

Macfarlanes London, UK 3 2.7 Cross Ocean Partners European Special Situations II (Special Situations, $1.2bn)

Kirkland & Ellis Chicago, US 2 2.5Marlin Equity Partners V (Special Situations, $2.5bn); Crescent Asia Consumer & Special Opportunities Fund (Special Situations)

Akin Gump Strauss Hauer & Feld New York, US 1 2.4 Castlelake V (Distressed Debt, $2.4bn)

Lowenstein Sandler Roseland, US 1 2.1 Cerberus Levered Loan Opportunities Fund III (Direct Lending, $2.1bn)


Fig. 2: Leading Law Firms Involved in Private Debt Funds in Market (As at October 2017)

Firm HeadquartersNo. of Known PD Funds in

Market

Aggregate Capital Targeted by

Known PD Funds in Market ($bn)

Sample Private Debt Funds in Market

Simpson Thacher & Bartlett New York, US 3 6.5 KKR Private Credit Opportunities Partners II (Mezzanine); GSO Capital Solutions Fund III (Distressed Debt, $6.5bn)

Debevoise & Plimpton New York, US 5 5.2Women Entrepreneurs Debt Fund (Direct Lending, $150mn); Park Square Capital Credit Opportunities III (Direct Lending, $1bn)

Akin Gump Strauss Hauer & Feld New York, US 3 5.0Apollo European Principal Finance Fund III (Distressed Debt, $4bn); Crayhill Northbrook Fund (Special Situations)

Schulte Roth & Zabel New York, US 7 3.1New Mountain Guardian Partners II (Direct Lending, $750mn); African Credit Opportunities Fund 1 (Mezzanine, $200mn)

Dechert London, UK 8 2.8Equita Private Debt Fund (Direct Lending, €150mn); NewStar Dartmouth Street Senior Loan Fund (Direct Lending, $500mn)

Paul, Weiss, Rifkind, Wharton & Garrison New York, US 3 2.8

Avenue Asia Special Situations Fund (Distressed Debt, $500mn); Paulson Strategic Partners Fund (Distressed Debt, $1.5bn)

Paul Hastings New York, US 2 2.0Pemberton Strategic Credit Opportunities Fund (Special Situations, €1bn); European Middle Market Private Debt Fund (Direct Lending, $750mn)

Foley & Lardner Boston, US 1 1.8 White Oak Yield Spectrum Fund (Direct Lending, $1.8bn)

Gibson, Dunn & Crutcher Los Angeles, US 3 1.7 Medley Opportunity Fund III (Direct Lending, $800mn); Arrowhead Mezzanine Fund III (Mezzanine, $400mn)


We list the leading law firms in the private debt industry and sample funds they have worked on.

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CONFERENCES


CONFERENCES

DECEMBER 2017

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Private Wealth Management Summit 2017 3 - 5 December 2017 Las Vegas, NV marcus evans Summits - -

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Astoria Investor Forum 2017 7 - 8 December 2017 Tokyo Astoria Consulting Group Ee Fai Kam $200 Discount – PREQIN2017

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JANUARY 2018


6th Independent Sponsors Summit 16 - 18 January 2018 New York, NY iGlobal Forum - -

FEBRUARY 2018


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SuperReturn International 2018 26 February - 1 March 2018 Berlin KNect365 -10% Discount – FKR2455PRQW

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CONFERENCES


DATE: 30-31 January 2018

LOCATION: New York, NY

INFORMATION www.iglobalforun.com/spfinance9

ORGANIZER: iGlobal Forum

iGlobal Forum is pleased to present the upcoming 9th Specialty Finance Summit, taking place in New York on January 30th and 31st, 2018. This summit will bring together the leading players from all sides of the specialty finance industry, discussing the major shifts in geopolitical, economic and technological factors affecting investment opportunities today. For more information, please contact [email protected].

9TH SPECIALITY FINANCE SUMMIT

DATE: 29 January 2018

LOCATION: Athens, Greece

INFORMATION https://imn.org/structured-finance/conference/Investors-Conference-on-Greek-Cypriot-NPLs-2018/

ORGANIZER: IMN

IMN’s Investors’ Conference on Greek and Cypriot NPLs will bring together key government entities establishing the NPL resolution framework with bank sellers and loan investors, as well as experts in bankruptcy/ insolvency counseling, capital markets advisory, and investment banking teams working on capital markets solutions for restoring bank balance sheets.

INVESTORS’ CONFERENCE ON GREEK AND CYPRIOT NPLS

http://www.iglobalforum.com/spfinance9https://imn.org/structured-finance/conference/Investors-Conference-on-Greek-Cypriot-NPLs-2018/mailto:[email protected]

PRIVATE DEBTSPOTLIGHT · 2017. 11. 30. · PRIVATE DEBTSPOTLIGHT. VOLUME 2, ISSUE 8 DECEMBER 2017....

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