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Private debt AUM hits $667 billion in 2017

Private debt assets under management reached $667 billion as of Dec. 31, up 13% from the previous year, said a quarterly report from Preqin.

That total consists of $421 billion in unrealized value of invested assets and $246 billion in dry powder. Distressed debt comprises the largest proportion of the total, at 32%, followed by direct lending at 30% and mezzanine funds, 22%.

The report also noted that during the second quarter of 2018, 22 private debt funds closed, securing an aggregate $25 billion, an increase of $5.3 billion over first-quarter fundraising and $600 million over the second quarter of 2017. Among regions, North America saw 11 funds close for a total of $16 billion, followed by European-focused funds with seven funds securing $7.2 billion. Three Asia-focused funds closed at $2 billion and one fund in the rest of the world raised $100 million.

Among funds that closed during the second quarter, direct-lending funds made up the majority, with 10 funds raising $7.8 billion. Three special situations funds raised $2.2 billion, two mezzanine funds raised $300 million and one fund of funds and one venture debt fund raised $200 million and $100 million, respectively.

The largest private debt fund closed in the second quarter was distressed debt fund GSO Capital Solutions Fund III, managed by GSO Capital Partners, Blackstone Group's credit arm, which closed at $7.4 billion.