Key Takeaways
- • Direct-lending strategy funds raised about $10.7 billion in funds completed during the first quarter, the lowest quarterly total in three years, according to With Intelligence data cited by Bloomberg.
- • Fundraising fell from $27.7 billion in the fourth quarter of last year, ending a run of seven consecutive quarters above $20 billion.
- • The sharp decline signals a pullback in capital raising for private credit lending strategies, a key development for managers and allocators tracking the segment.
Summary
Direct-lending strategy funds raised a total of about $10.7 billion in funds completed during the first quarter, the lowest quarterly amount recorded in the past three years, according to data compiled by With Intelligence, an alternative investment research provider owned by S&P Global. The figure marks a steep drop from the $27.7 billion raised in the final quarter of last year.
The decline breaks a streak of seven consecutive quarters in which direct-lending fundraising exceeded $20 billion, according to the same data. The slowdown indicates a dramatic shift in capital formation for the strategy, which has been a major growth area within private credit over recent years.
The Bloomberg report relies on With Intelligence's compilation of completed funds, so the figures reflect closes recorded during the quarter rather than all capital in market. Allocators and managers should consider that fundraising totals can lag deal activity and that the quarterly figure may be revised as additional closes are reported.
The decline breaks a streak of seven consecutive quarters in which direct-lending fundraising exceeded $20 billion, according to the same data. The slowdown indicates a dramatic shift in capital formation for the strategy, which has been a major growth area within private credit over recent years.
The Bloomberg report relies on With Intelligence's compilation of completed funds, so the figures reflect closes recorded during the quarter rather than all capital in market. Allocators and managers should consider that fundraising totals can lag deal activity and that the quarterly figure may be revised as additional closes are reported.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.