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Private debt is projected to increase 11.4% annually, to $1.46 trillion at the end of 2025, from $848 billion at the end of 2020, according to a survey from Preqin about the future of alternative assets that was published today.
Preqin defines private debt as "private equity-structured vehicles that primarily trade in debt and credit instruments." It includes direct lending, mezzanine, distressed, special situations and venture debt funds. Direct lending is the practice of nonbank lenders extending loans to small and medium-sized businesses in return for debt securities rather than equity, according to Preqin.
At year-end 2020, assets under management by alternative assets firms globally is expected to total $10.74 trillion, according to the survey of investors and fund managers, entitled "Future of Alternatives 2025." The total AUM of alternatives is expected to climb to $17.16 trillion by the end of 2025.
Private equity and private debt will be the biggest drivers of the alternative asset class’s growth, according to Preqin.
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The premier conference for middle-market M&A will return to the ARIA Resort & Casino in Las Vegas on April 27–29, bringing together the most influential private equity dealmakers, investment bankers, lenders, M&A partners, and strategic acquirers—all under one roof.
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