Private debt continues to establish itself as a significant player in today's financial landscape, experiencing robust growth as an asset class. The industry, worth $1.5 trillion, has experienced a compound annual growth rate (CAGR) of approximately 10% in the past decade. This growth trajectory is expected to accelerate, considering the current macroeconomic landscape, with the combination of a floating-rate structure and market-based pricing for private debt offering the potential for enhanced risk-adjusted returns in response to the rise in interest rates.
Preqin's most recent quarterly update reveals compelling statistics for the second quarter of 2023. During this period, $71 billion was raised with the lion's share of these fresh investments flowing into direct lending ($42 billion) with mezzanine debt also enduring ($18 billion) during the second quarter.
The first private debt fund we partnered with was VSS Structured Capital, a leading name in the industry, with the last three funds being ranked #1 in the Preqin Mezzanine Category by Net IRR, and Pitchbook naming VSS's flagship fund family, the top-rated Credit family across all types.
Given the significant interest Gridline members have expressed in the asset class, we’re excited to announce the upcoming launch of our partnership with a leading direct lending firm that has originated over $150B in loans across a 25-year history. The firm has a significant track record of generating consistent net returns and current income while maintaining low defaults and credit losses.
This is an opportune moment to enter the private credit markets as risk-free rates are at their highest levels for a generation and credit spreads – the amount investors are compensated above risk-free rates for extending risky credit – are at or above their long-term averages.
-Logan Henderson, Founder and CEO
Investment Opportunities
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Webinar
Beyond the Public Markets: Maximizing Returns through a Multi-Asset Portfolio
Join us on Thursday, August 31st at 1:00 pm ET. We'll be discussing how you can evolve your portfolio to include diverse asset classes and under-the-radar managers through simple-to-execute strategies. During the session, you'll hear about:
- The key differences between public and private market investing
- How access, due diligence, and fund selection impact returns
- The evolution of your private & alternative allocation strategy
- How to achieve diversification through Gridline Thematic Portfolio funds
We hope you'll join us, but if you can't attend live, register and we'll share the recording with you after the session.
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