Private Credit Fundraising Hits Lowest Level Since 2020
- Q1 fundraising slowed as inflation, rates stay high: Preqin
- Fundraising pace may catch up later in the year, report notes
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Private credit fundraising scraped the lowest level in any quarter since 2020 as inflation remains stubbornly high and the Federal Reserve primes investors for interest rates to stay elevated for longer.
Managers across the private debt arena raised $30.6 billion in the first three months of this year — roughly 14% below the average of $35.8 billion seen over every first quarter since 2017 — a report from data provider Preqin Ltd. shows. Interest rates and inflation were highlighted as investors’ top two concerns for private debt in the report, at 70% and 37% of those surveyed.