The Key Dynamics of Private Debt | Akin Gump Strauss Hauer & Feld LLP
• Despite the COVID-19 pandemic, 2020 has always seen robust private equity (PE) activity compared to historic activity, with well over 5,000 deals closed, even amid a decline in value overall transactions at just over $ 664 billion. This healthy volume has helped stimulate significant demand for private debt loans to PE portfolio companies.
• Private equity fundraising, particularly PE, again saw healthy levels of committed capital even as the count of closed funds plunged.
• The tendency of more experienced and larger fund managers to further close large pools of capital was also true for the private debt universe.
• Opportunism characterized fundraising trends by strategy throughout 2020, with particular situations profiting, as well as general debt, as PE fund managers sought tailor-made financing solutions for portfolios. and private debt players targeted struggling companies.
• The pandemic-triggered levies reduced the record excess private debt capital in 2020, but strong fundraising is expected to help replenish.
• As 2021 approaches, fund managers will face growing demand from private equity firms and other entities as the economic recovery deepens with persistent upheavals, providing new opportunities for capital deployment. .
Please see the full publication below for more information.