With inflation remaining stubbornly high and the Federal Reserve seemingly set to keep interest rates higher for longer, private credit fundraising has fallen to the lowest level seen since 2020, according to a report by Bloomberg.
The report cites a survey by data provider Preqin in revealing that managers across the private debt space raised $30.6bn in the first three months of this year — around 14% lower than the the average $35.8bn seen in every first quarter since 2017.
Survey respondents highlighted both interest rates and inflation as their top two concerns for the private debt market.
The report quotes Yasho Lahiri, a Partner at Kramer Levin practicing in private investment funds: “It’s been one of the worst fundraising markets there’s been for private funds. I think it has to do with the fact that there hasn’t been a Fed rate cut and a lot of people are sitting and waiting to see if there’s more guidance before they do anything.”
