Fundraising

With private credit fundraising flourishing, new managers emerging and GP-led deals on the increase, Leor Landa, head of Davis Polk & Wardwell’s investment management practice, and partner Sijia Cai, are expecting a bright future for the private credit secondaries market.

The fund raised more than double the capital of its predecessor for lending to European mid-market companies.

Despite the lack of deal volume and build-up of dry powder in the sector, there remain parts of the market where borrowing needs are not being met.

Fundraising in private debt has struggled in recent years, a counter-intuitive development given the high hopes widely expressed for the asset class’s future. In The Private Debt Investor Podcast, Jess Larsen of Briarcliffe Credit Partners says a corner is being turned in 2025.

The fund beats its target, doubles its predecessor and reflects the return of creative aircraft financing.

The joint venture is structured as a RAIF and will look to acquire mainly senior-secured direct lending stakes.

The fund seeks to monetise assets independently of a borrower’s overall performance.

While a tangible decline has yet to surface, prolonged sluggish fund performance predicts a negative trend.

Investor sentiment around private debt has proved determinedly positive, but funds have been finding the capital-raising environment tough. Did a surge in Q1 mean a corner has been turned?

The fund closed ahead of target, citing strong demand for European lending from investors.