In September 2024, Churchill surveyed institutional and private wealth investors to explore the growing role of private debt in today’s dynamic investment landscape.
A year ago we identified four issues for 2024 that would lay the foundations for a Goldilocks era in private debt and private equity:
How a recalibrating market will accommodate the new higher normal for interest rates.
Why dispersion between winners and losers looks set to increase.
Why portfolio performance will rely on diversification across high quality issuers, industries, and asset classes, combined with alignment with top private equity owners.
How private capital providers’ increasingly sophisticated financing tools will meet the market’s complex needs and generate strong risk-adjusted returns for investors.
It turns out all these factors did contribute to a stellar year for top private capital managers and investors...
Investors are by and large happy with what private debt has achieved, even if they do have some reservations.
In a column before the holidays, we reflected on preliminary findings from our LP Perspectives study showing that 58 percent of investors wanted to invest more in private debt over the next 12 months...
The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 11% as of 6 January) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses that tend to be below investment grade or not rated, with most lending comprising of senior secured loans)...
Since the Global Financial Crisis, direct lending AUM has grown at a faster rate than other private debt strategies in Europe, such that it now comprises more than two-thirds of private debt AUM (67.3%)...
This publication is a service to our clients and friends. It is designed only to give general information on the market developments actually covered. It is not intended to be a comprehensive summary of recent developments or to suggest parameters for any prospective financing opportunity.
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