Private Debt

The use of subscription line financing by private debt managers has been an area of controversy, but market experts say its rise is inexorable.

As we near the end of the current cycle, the maturing private debt industry hits a crucial stage in its evolution. Cesar Estrada, State Street’s head of product management for private equity and real assets fund services, explains how fund services will play a part.

As the asset class continues to grow quickly, it is struggling to ensure that administrative aspects keep pace.

Private equity assets under administration, a category that includes private debt, jumped 18% to $2.29trn in 2017.

The new law doubles the amount of leverage BDCs can use.

Patriarch Partners' CEO Lynn Tilton placed three CLO funds into bankruptcy earlier this month, the latest move in a 15-year long saga that has included numerous lawsuits and a victory against the SEC.

The Swiss investor posted its largest ever fee income last year, but its performance fee pool was down by one-third despite overall performance fee growth.

The firm has also set a new dividend policy with the potential for special dividends when performance fee income is particularly elevated.

Réal Desrochers, the former head of alternatives at CalSTRS examines the role of distressed debt and restructuring funds in an institutional portfolio.

The joint venture has admitted final defeat in trying to restructure the debt on the New York multifamily complex, saying they had no intention of putting Stuyvesant Town/Peter Cooper Village into bankruptcy.