The rise of private debt over the past decade has been little short of meteoric. Against a background of increasingly volatile public and private markets, private debt has maintained a remarkable upward trajectory, with increasing AUM propelled by growing reserves of dry powder.

This study aimed to shed light on the factors underpinning private debt’s dramatic expansion and where it might be heading. It also examines the opportunities and challenges facing asset managers, as well as the strategies they are adopting in the race to attract capital.

Highlights from the report include:

• Almost three-quarters (70%) of respondents expect the share of their AUM allocated to private debt to increase over the next 12-24 months, including a fifth who expect it to rise significantly.
• Direct lending (97%), special situations (80%), and distressed debt/rescue lending (77%) are the most common private debt strategies to which our survey respondents have exposure.
• The two most important factors that drove private debt markets over the last 12-24 months were the increase in the size of addressable markets (53% of respondent votes) and volatility in public markets (45%).