Bid-Ask Spread Most Contentious of Secondaries’ Challenges
The secondary market for private‑debt assets is grappling with pricing disputes, chiefly the bid‑ask spread, which has emerged as the most contentious negotiation point. Sellers push for higher spreads to capture perceived value, while buyers demand tighter pricing to protect returns. This friction hampers deal velocity and can deter participation from both sides. Industry observers note that without clearer pricing frameworks, the secondary market’s growth may stall despite strong demand for liquidity.
Download PDI’s 2026 Europe Report
Private Debt Investor (PDI) has released its 2026 Europe report, spotlighting the five hottest private‑credit opportunities across the continent. The analysis details how European lenders are adapting their strategies to accommodate an influx of retail investors. Expert commentary from industry...
Proskauer: Expanding Secondaries Buyer Universe Fuels Growth
Proskauer’s secondary‑transactions partners say the credit secondaries market is riding strong momentum, driven by an expanding universe of buyers. While deal activity is robust, they note ample room for growth as new investors enter the space. The firm highlights that...
Loan Note: What’s Front of Mind Ahead of Our Europe Summit; Moody’s Gathering Hints at Regulatory Direction
The Private Debt Investor (PDI) Europe Summit next week will center on the rapid expansion of private credit in Europe and the challenges it poses for investors. Organizers highlight that recent gatherings by Moody's have offered early clues about forthcoming...
Investor Intentions: GEPS Looks to Expand Its Private Debt Exposure
South Korea's Government Employees Pension Service (GEPS) plans to allocate between $200 million and $300 million to private debt funds in 2026. The move expands the pension fund’s exposure to alternative credit assets, complementing its traditional equities and fixed‑income holdings. GEPS seeks...
Investors Fly Blind Into Private Funds
A recent Adams Street survey indicates that individual investors plan to increase allocations to private equity and credit funds, even though many lack a clear understanding of these complex structures. The data suggests a growing appetite for private‑market exposure among...
Primary Wave Holds $2.2bn Final Close on Music Royalties Fund
Primary Wave announced a $2.2 billion final close on its fourth music‑royalty fund, topping the original $1.5 billion target and hard‑cap. The fund, the largest in the company’s series, will acquire and manage a diversified portfolio of song and sound‑track royalties. By...
Real Estate Brokers Turn to Private Credit Funds – Report
A London School of Economics study finds private credit funds now dominate UK real‑estate lending, accounting for the majority of new mortgage financing. As banks tighten credit under stricter Basel III rules, brokers are increasingly routing deals to private lenders....
Infra Debt Most Popular for 2026 Credit Allocations – Research
Research released this week shows infrastructure debt has become the top choice for 2026 credit allocations among limited partners. The trend is most pronounced at institutions with established credit programs, where infra‑debt now eclipses traditional high‑yield and leveraged loan exposure....
Saba Capital to Expand Second-Hand Liquidity Platform for BDCs, Interval Funds
Activist hedge fund Saba Capital announced an expansion of its second‑hand liquidity platform to include both public and private Business Development Companies (BDCs) and interval funds. The firm will focus on securities trading at discounts of 30% or more to...
Moody’s Analysts Discuss Their Outlook Downgrade for BDCs
Moody’s has revised its outlook for Business Development Companies (BDCs) to negative, citing mounting pressures across the sector. The rating agency highlighted four core concerns: elevated leverage ratios, heightened redemption activity, weakening asset quality, and the looming threat that artificial‑intelligence‑driven...
Mercer Closes Private Assets Fund on Nearly $4bn
Mercer announced the closure of its eighth private‑assets fund with commitments totaling nearly $4 billion, surpassing the original $3.5 billion target. The fund, part of the firm’s long‑standing private‑markets platform, attracted a broad base of institutional investors, including pension plans and sovereign...
Standard Life Targets First CLO Deal Amid Structured Credit Push
Standard Life, the UK‑based insurer, is actively courting collateralised loan obligation (CLO) managers as it prepares to launch its first CLO investment. The move is part of a broader push into structured credit and private‑debt assets, complementing its existing fund‑finance...
StepStone Group Closes $1.58bn Credit Opportunities Fund
StepStone Group announced the closing of its Credit Opportunities Fund II at $1.58 billion, more than twice the original target. The fund will focus on secondary market purchases and co‑investment opportunities across the private credit spectrum. The oversubscription reflects strong investor...
Blue Owl Returns 35% of BDC’s NAV to Investors
Blue Owl Capital announced that its Business Development Company (BDC) will return 35% of its net asset value to shareholders, translating to an estimated $350 million cash distribution. The payout is being made as a special dividend to enhance investor returns...
Ex-Nuveen APAC Chief Builds New Investment Firm, Eyes GPs
Simon England‑Brammer, former Nuveen APAC chief, has launched a new investment firm aimed at allocating capital to private credit and private equity strategies. The venture, operating under a low‑profile approach, is already establishing a track record and attracting a growing...
Ashmore Group Partners with EBRD to Scope Out Impact Debt Fund
Ashmore Group has teamed up with the European Bank for Reconstruction and Development (EBRD) to explore the creation of an impact‑focused debt fund. The partnership is backed by a grant from Global Affairs Canada and the blended‑finance network Convergence, which...
Moody’s: Mid-Market Credit Quality Erosion Is Hidden in Plain Sight
Moody's warns that credit quality in the U.S. mid‑market is deteriorating faster than most observers realize. Rising leverage, shrinking liquidity buffers, and weaker free‑cash‑flow generation are converging to increase default risk for firms with $50 million‑$500 million EBITDA. The rating agency’s analysis...
Some EM Debt May Be Getting More Attractive, Says Gramercy
Gramercy Capital notes that emerging‑market (EM) sovereign and corporate debt is becoming more attractive as elections in three major economies are likely to trigger structural reforms. The firm expects policy shifts to improve fiscal discipline, reduce currency volatility, and deepen...
Adams Street Calls for Greater Transparency From BDCs and Interval Funds
Adams Street Capital Management is urging business development companies (BDCs) and interval funds to adopt a new transparency framework. The firm outlined six concrete metrics—covering liquidity, portfolio concentration, leverage, valuation methods, cash flow, and redemption policies—to replace vague reassurances. By...
Loan Note: Nothing Wrong with Cautious Deployment, Korea LPs Urge; Mis-Selling Cited as Redemption Root Cause
Korean limited partners (LPs) cautioned investors to slow capital deployment during Japan Korea Week, warning that aggressive funding could exacerbate market volatility. They identified misleading marketing of evergreen funds as the primary driver of recent redemption spikes, with some managers...
Comvest Partners Raises $2.63bn for Flagship Credit Strategy
Comvest Partners announced the closing of its flagship private credit fund, Comvest Credit Partners VII, at $2.63 billion, surpassing the original $2.5 billion target. The fund, which targets middle-market leveraged loans and high-yield debt, attracted commitments from a broad base of institutional...
DOWNLOAD: Q1 2026 One of the Most Prolific Fundraising Quarters on Record
The private‑debt sector posted a record‑breaking fundraising quarter in Q1 2026, marking one of the most prolific capital‑raising periods in its history. Institutional investors poured fresh money into private‑debt funds, offsetting lingering skepticism among retail participants. The surge reflects strong demand...
Addressing Trustee Anxiety About Headlines, Chicago’s Consultant Stresses Credit’s Insulation From Issues
Chicago’s $14 billion pension plan hired consulting firm Callan to calm trustee nerves sparked by recent headlines about private‑credit volatility. The consultant presented a broad view of tailwinds supporting the asset class, from growing retail investor participation to historically low default...
Adams Street Partners Holds $7.5bn Final Close
Adams Street Partners announced the final close of its third private credit platform, securing $7.5 bn in commitments. The fund will focus on senior financing for sponsored mid‑market companies across the United States and Europe. By targeting senior debt, the platform...
The Illiquidity Crisis: Democratised and Distressed
Matthias Kirchgaessner’s latest editorial dissects an emerging illiquidity crisis that now spans both retail and institutional investors. He highlights a 40% year‑over‑year jump in retail fund redemptions during Q1 2024, while institutional portfolios confront tighter liquidity covenants and heightened margin calls....
Samsung Asset Management Eyes Credit Secondaries, Co-Investments
Samsung Asset Management announced it will pursue credit‑secondaries and co‑investment opportunities, aiming to add a layer of downside protection amid volatile macro trends. Head of OCIO Seong Sup Cho said the strategy lets the firm move against the herd rather...
Manulife to Deploy More than $2bn in Private Credit
Manulife Financial announced it will allocate more than $2 billion to private‑credit investments in 2024, with an initial $400 million committed to five specialist managers. The capital will be used for senior secured loans, mezzanine debt and other specialty financing structures. The...
Loan Note: ‘Asset-Light’ Model Under Scrutiny; Square Nine Teams with Liberty Mutual
The private‑equity‑driven “asset‑light” model, popular in private credit, is facing heightened scrutiny over risk concentration and valuation transparency. Meanwhile, debt platform Square Nine announced a strategic partnership with insurer Liberty Mutual to expand its capital‑raising capabilities. In the UK, pension...
Carlyle Interval Fund Limits Outflows After 15.7% of Assets Requested for Redemption
Carlyle’s flagship interval fund announced it will limit outflows after investors submitted redemption requests totaling 15.7% of the fund’s net asset value. The firm said the surge in withdrawal requests reflects a broader market shift toward liquidity rather than concerns...
Loan Note: Fundraising Maintains Momentum in Q1; Moody’s Takes Dimmer View of BDC Market
Fundraising in the private‑debt space remained strong throughout Q1, even as semi‑liquid funds grapple with a surge in redemption requests. Investors are also wary of AI‑driven disruption in software‑focused loan portfolios, adding a layer of credit risk. Moody’s shifted its...
Ares Names New Asia Credit Head
Ares Management has appointed a former Goldman Sachs executive as the new head of its Asia credit platform, succeeding Edwin Wong. The change coincides with the addition of co‑heads for the firm’s Asia special situations strategy, signaling a broader leadership...
Barings BDC Joins Peers in Gating Redemptions After 11.3% Is Requested
Barings Business Development Company (BDC) announced it will gate investor redemptions after receiving redemption requests totaling 11.3% of net asset value. The move aligns with recent actions by peer BDCs seeking to preserve portfolio integrity amid heightened withdrawal pressure. Barings...
US Regulators Aim Sights on Private Debt Risk as Insurance Interest Grows
U.S. regulators are turning their attention to the growing risk profile of private debt as insurance companies pour more capital into the asset class. The Federal Reserve and the Office of the Comptroller of the Currency will begin a series...
Jiří Król: How the UK Has Achieved a Good Balance in Its Securitisation Reforms
The UK has introduced a series of securitisation reforms that aim to strike a balance between market competitiveness and robust investor protection, according to Jiří Król, global head of the Alternative Credit Council. The proposals maintain equal weighting for both...
Loan Note: Andalusian BDC Joins with Carlyle; Värde in SRT Agreement with Klarna
Andalusian BDC has entered a joint venture with private‑equity giant Carlyle to expand its private‑credit platform across Europe. The partnership aims to originate and manage mid‑market loan assets, leveraging Carlyle's global reach and Andalusian's local expertise. Meanwhile, asset manager Värde...
How Asset-Based Finance Is Finding Its Role in Commercial Real Estate Portfolios
Asset‑based finance (ABF) is transitioning from a niche product to a mainstream funding source for commercial‑real‑estate (CRE) owners, offering loans secured by property, equipment, or receivables. The secured structure enables higher leverage and lower covenant intensity than traditional cash‑flow loans,...
Ares Raises $9.8bn for Opportunistic Credit Fund
Ares Management announced the closing of its latest opportunistic credit fund with $9.8 billion in commitments, surpassing both the original fundraising target and the size of previous vintages. The Los Angeles‑based firm highlighted strong investor appetite for flexible credit strategies amid volatile...
Moody’s: Bank NDFI Exposure Grows to $1.4trn at Year-End 2025
Moody’s forecasts that large U.S. banks’ loans to non‑depository financial institutions (NDFIs) will total about $1.4 trillion by the end of 2025, marking a rapid expansion of this asset class. The exposure represents roughly a 30 percent increase from current levels and...
KKR on How Capital Solutions Are a Structural Growth Opportunity
KKR’s Strategic Investments Group is championing capital‑solutions strategies that pair companies with flexible, partnership‑oriented financing. Blaine MacDougald, co‑head of the group, stresses that these solutions are built on aligned value creation, allowing firms to pursue growth without the constraints of traditional...
Arrow Global on How Operational Capability Underpins Success in Asset-Backed Investing
Arrow Global’s head of credit and lending, Toni McDermott, highlighted the firm’s operational‑centric strategy in private‑credit investing. He argued that a hands‑on approach to managing asset‑backed portfolios generates superior returns, especially when markets are stressed. By embedding operational expertise—such as restructuring,...
RBC BlueBay Asset Management on Tackling Emerging Market Private Credit Misconceptions
RBC BlueBay Asset Management’s credit team, led by Mihai Florian, is urging investors to revisit private credit opportunities in emerging markets, arguing that misconceptions about risk have left attractive yields untapped. The firm highlights its disciplined underwriting, local partnerships, and...
Ares, Antares Close $1.7bn Continuation Vehicle
Private credit managers Ares Management and Antares Capital have closed a $1.7 billion continuation vehicle. The fund will hold more than 300 first‑lien loans originated and serviced by Antares, extending the life of these assets. By moving the loans into a...
Arizona State Pension Cuts Projected Returns Out of Private Credit
Arizona's $63 billion state pension system announced it is cutting its projected returns for private‑credit investments, reflecting a more competitive fund environment. While the fund will keep its existing allocation target to private credit, the lower return assumptions could pressure funding...
Lone Star Execs Break Down US Resi Thesis for Latest $1bn Credit Strategy
Lone Star executives Mike Droege and Jeff Kert outlined a new $1 billion credit strategy centered on U.S. residential mortgage loans. The fund will target more than $10 billion of newly originated, performing non‑agency mortgages, leveraging Lone Star’s private‑credit platform to earn...
Investor Intentions: Boston Retirement Systems Issues RFP for Private Debt Manager
The Boston Retirement System (BRS) has issued a request for proposal for a $115 million private‑debt mandate. The pension fund is seeking an external manager to allocate capital in senior‑secured loans and ESG‑aligned credit. This RFP reflects BRS’s strategy to diversify...
Investor Intentions: Marin County Employees’ Retirement Association Seeks to Invest $100m in 2026
Marin County Employees' Retirement Association (MCERA) is evaluating six finalists to manage its private credit portfolio, with a targeted $100 million allocation slated for 2026. The pension fund aims to diversify its fixed‑income holdings and capture higher yields in the growing...
Davidson Kempner: Opportunistic Credit Could Benefit From ‘Capital Structure Reset’
Davidson Kempner’s new white paper warns that mounting stress in private‑equity funds and their portfolio companies is likely to trigger a wave of capital‑structure resets. Higher interest rates and elevated leverage are pushing many firms toward refinancing, covenant breaches, and...
BCRED Issues CLO Following Redemptions, Turbulence in NAV
BCRED, a business development company, issued a new collateralized loan obligation (CLO) to shore up its balance sheet after a wave of investor redemptions. The move follows a 0.4% drop in February NAV, marking the BDC’s first monthly loss in...
Loan Note: Fund Structuring Under Scrutiny; LPs Reveal Strategic Preferences
The latest Loan Note briefing highlights growing scrutiny over fund structuring, with mis‑selling and mis‑structuring flagged as core concerns for retail‑focused private debt vehicles. Regulatory attention is intensifying, prompting managers to reassess compliance and disclosure practices. Meanwhile, Blue Torch announced...