Private Debt Fundraising Squeezed by Pandemic Jitters, Election
- Asset class raised $8.3 billion in the third quarter: Preqin
- Shadow banks sitting on $300 billion of dry powder to deploy
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Private credit fundraising slumped globally to $8.3 billion in the third quarter, down 68% from the same period a year ago, as investors took a wait-and-see approach amid uncertainty caused by the pandemic.
The last quarter’s figures compare to $37.6 billion brought in for the asset class in the second quarter, according to London-based research firm Preqin Ltd. In North America -- the biggest hub for alternative lending -- fundraising fell to $7.8 billion in the third quarter, down from $24.6 billion the prior quarter and compared to $8.6 billion in the same period in 2019.