Global private debt fund market now at $440 b: Trade body

Monday, 11 May 2015 13:43 - - {{hitsCtrl.values.hits}}

LONDON (Reuters): Private debt funds raised $64 billion in 2014 and now manage $440 billion globally, providing a lifeline to smaller businesses as banks lend less, the Alternative Investment Management Association said last week.

New rules since the financial crisis aiming to limit risk taking by banks have forced them to cut back on loans, tightened the underwriting requirements and increased loan approval times. Hedge funds and others have moved in to exploit the opportunity.

The study by the hedge fund trade body showed that the volume of deals in Europe by both alternative and more mainstream private debt funds rose 43% last year, with the number of funds doubling to 40 since 2012.

A further 81 new funds are in the market to raise 50 billion pounds ($75.94 billion), it added.

These private debt funds have extended loans to sectors such as social housing, health, renewable energy and shipbuilding.

“Buoyed by both increased demand from investors as well as a growing appetite from businesses for alternative sources of funding, these markets are starting to have a noticeable impact on economic activity,” said Stuart Fiertz, President of Cheyne Capital and chairman of AIMA’s Alternative Credit Council.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.