Private Debt Compendium 2023 (SECA (Swiss Private Equity and Corporate Finance Association))

Summary

• SECA represents Switzerland's private equity, venture capital, and corporate finance sectors with more than 500 membersp.2
• Long-term institutional investors can target a private markets allocation of 6-10% to optimize risk and returnp.6
• The global private credit universe reached USD1.25tn, with direct lending representing 43% of total AUMp.34
• BlackRock Alternative Investors managed USD 322bn in alternative investments and commitments as of 30 June 2022p.30
• The global sustainability-linked loan market expanded to USD 600 billion in 2021, representing a 3.5 times increase from 2020p.58
• Capital Dynamics oversaw more than USD 14 billion in assets under management and advisement as of Q2 2022p.40
• Partners Group reported USD 131 billion in assets under management as of 30 June 2022p.57

Key insights

1. In 2022 YTD through 30 September 2022, the Alpinum Private Debt Portfolio returned 2.0% compared to a loss of -25.4% for global equitiesp.25
2. US corporate default rates in 2023 are forecasted to peak at 6.0% to 6.5% for high yield bonds and just under 5.0% for leveraged loansp.23
3. Nearly 90% of broadly syndicated loans feature covenant-lite structures, whereas covenant-lite deals account for less than 5% of private credit portfoliosp.24
4. Partners Group deployed EUR 750 million in sustainability-linked loans across European lending activities over a 12-month periodp.59
5. Global private credit fundraising in 2022 was projected to reach approximately $201bn, representing a 6% decrease from 2021p.34
6. The U.S. Consumer Price Index increased by more than 7 % in January 2022p.42
7. The private insurance debt market in Europe, Bermuda, and the US includes around 300 tracked transactions with a cumulative volume of nearly EUR 30 Billionp.65
8. Alpinum Investment Management AG is FINMA-licensed and manages CHF 2 Milliardenp.10