Fundraising by global private credit funds dropped 43% in the third quarter of the year compared with the preceding three month period top $38.8bn, according to a report by Bloomberg, citing data from industry research for Preqin.
Peqin’s data reveals that the decline came on the back of a strong second quarter, which saw funds raise $67.7bn.
While private equity fundraising has been adversely impacted by aggressive central bank rate hiking programmes, private credit’s floating rate loans mean it has remained something of a bright with investors enjoying higher returns as rates increase.
According to Preqin, the slump in fundraising during the third quarter is likely because of seasonal factors and the fourth quarter “could make up ground lost during this summer’s lull”.
Blackstone’s Green Private Credit Fund III, which raised $7.1bn for the energy transition, notably a more niche strategy than the typically dominant direct lending, was one of the largest North American finds to close on Q3.
