2024
Trends in Private Credit Fund Structuring
Private credit managers are adapting fund structures and investment terms as institutional investors seek more customized risk and return profiles and managers seek to tap the retail investor market. Find out more about the fund structuring trends shaping the industry.
*Based on insights from a survey of 40 private credit managers and a series of one-on-one interviews with private credit managers across a broad cross-section of jurisdictions and representing an estimated US$800 billion private credit assets under management.
Download The ReporT
Key Findings
The age of customization: what you need to know
How the right borrowing arrangements can drive returns
Retail capital: addressing growing demand
Fund domicile: why familiarity matters
Read our private credit insights
Share this page:
This report has been produced ...
Read the report
of managers expect co-investment demands to increase
Nada Aswad
Sales Product Management – Global Private Markets, Man Group
We have a lot of entry points, and we’ll customise bespoke arrangements to deal with investor preferences which cover tax structuring, levered vs unlevered, currency, AIFMD and regulatory to name a few.”
Matthew Jill
Partner and General Counsel, Private Funds & Secondaries, Ares
Managers are driving ESG terms; rather than the banks asking for it, and we are asking the banks to incorporate this proactively. For subscription facilities, raising new financing and bank proposals we ensure that ESG is a key criterion.”
Murtaza Merchant
Managing Partner, MV Credit
Peter Clark
General Counsel & CCO, Leadenhall Capital Partners
The difficulty of exploring new jurisdictions for fund structures is that many don’t travel well with investors. You would need to be certain that you could attract sufficient AUM to justify it."
How we can help
Sophisticated and practical ESG advice for asset managers across the U.S., Europe, Asia and other jurisdictions.
Read about our ESG for Asset Managers service offering.
Transformational advice for the financial sector on important matters and complex issues.
Read about our Global Finance services.
A leading global private funds practice advising private fund sponsors on all aspects of the fundraising lifecycle.
Read about our Private Funds services.
Integrated corporate, securities, finance, investment management, regulatory and tax services for asset managers executing permanent capital strategies.
Read about our Permanent Capital services.
Exceptional market insight and innovative structuring alongside strong financing capabilities, market-leading fund formation, regulatory, M&A and tax expertise.
Read about our Private Credit services.
PRIVATE
CREDIT
PERMANENT CAPITAL
PRIVATE
FUNDS
GLOBAL
FINANCE
ESG FOR ASSET MANAGERS
69% of managers expect the need for co-investment to increase.
Investor demand for tailored investment structures is growing, and managers should prepare to customize access to investment strategies.
read the article
66% of managers use leverage within their investment strategy but no common approach prevails.
Well-structured borrowing arrangements are increasingly driving returns.
READ THE ARTICLE
Operational and regulatory complexities likely to be some of the biggest challenges managers face when raising retail capital at scale.
Two thirds of firms will or are considering using retail capital for their next fund offerings, compared with 41% of retail clients today.
read the article
Luxembourg and the Cayman Islands are the most popular domiciles amongst respondents, with 59% having funds based in these jurisdictions.
Investor and manager preferences on domicile are driven by factors such as familiarity, service provider capacity, costs and regulatory certainty.
read the article
At a glance
of managers expect
co-investment demand
to increase
69%
of managers use
leverage within their
investment strategy
66%
2/3
of firms will or are considering using retail capital for their next fund offerings
Investor and manager preferences on domicile are driven by factors such as familiarity, service provider capacity, costs and regulatory certainty.
Dechert is the only law firm shortlisted for both transactions and fund formation in the PDI Global Awards. Winners are decided by vote and we would appreciate your help.
Visit PDI Global Awards 2023, select the Global section, then scroll down to:
Global Law Firm of the Year – Transactions
Global Law Firm of the Year – Fund Formation
VOTE NOW!
Dechert Named Among Top Global Firms for Transactions and Fund Formation