PRIVATE DEBT

SPOTLIGHTVOLUME 2, ISSUE 5 ■ AUGUST 2017

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IN THIS ISSUE

FEATURE Investor Appetite for Mezzanine Funds

2

Q&A The Burgeoning Private Debt Market

5

INDUSTRY NEWS 8

THE FACTS■ Private Debt Deals in H1 2017■ Sample Investors to Watch in H1 2017

9

10

CONFERENCES 12

RECENTLY RELEASED: 2017 PREQIN PRIVATE CAPITAL FUND TERMS ADVISOR

THE 2017PREQIN PRIVATE CAPITAL FUND TERMS ADVISOR

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Order Your Copy Download Sample Pages

INVESTOR APPETITE FOR MEZZANINE FUNDS

$31bnPrivate debt saw record fundraising success in 2016, with an aggregate $31bn in capital raised by mezzanine funds alone.

Find out more on page 2

THE BURGEONING PRIVATE DEBT MARKET

Sylvia Owens from Aksia and Ryan Flanders from Preqin answer questions key to prospective private debt investors, and present their own views on the progress of this growing asset class.

Find out more on page 5

Private credit as an asset class is gaining momentum across all types of investors

INVESTOR APPETITE FOR MEZZANINE FUNDS

© Preqin Ltd. 2017 / www.preqin.com2 Private Debt Spotlight | August 2017

INVESTOR APPETITE FOR MEZZANINE FUNDS

Investors surveyed for the forthcoming Preqin Investor Outlook, H2 2017

are generally satisfied with the private debt asset class: 57% of respondents have a positive perception, and 92% feel performance over the past 12 months either met or exceeded expectations. Despite raising just $3.4bn in aggregate capital so far this year, mezzanine funds in particular are drawing a lot of attention from investors. After direct lending, the second largest proportion (40%) of respondents see mezzanine funds as presenting the best opportunities at present (Fig. 1). Furthermore, almost half (48%) of respondents believe mezzanine funds present the best risk/return profile of any private debt strategy, surpassing distressed debt by 21 percentage points (Fig. 2).

INVESTOR MANDATES FOR MEZZANINEAs at July 2017, Preqin’s Fund Searches and Mandates tool on Private Debt Online is tracking nearly 400 investors that are looking to invest across private debt within the coming year. Of these, 41% are actively seeking investments in mezzanine funds, the largest proportion of all fund types (Fig. 3).

Investors with active mandates for mezzanine exposure are spread across

the globe, with 35% located in Europe, 33% in North America and 26% in Asia. The even distribution of investors looking for mezzanine opportunities signifies that improved LP interest and positive perception of the strategy is not isolated to one area.

PERFORMANCEMezzanine strategies have outperformed not only distressed debt strategies, but also the private debt asset class as a whole across one-, three- and five-year investment horizons (Fig. 4).

FUNDRAISINGMezzanine funds saw record fundraising success in 2016, with an aggregate $31bn in capital raised. The majority was secured during Q4 2016, when 15 funds closed, securing an aggregate $23bn – roughly 75% of the year’s total (Fig. 5). The average size of funds closing during the quarter was also a record high at $1.5bn.

In 2016, seven mezzanine funds closed having secured over $1bn, five of which closed in the fourth quarter. The largest was GSO Capital Opportunities

23%

48%

21%

27%

21%

2%4% 4%

0%

5%

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t

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Situ

atio

ns

Cons

umer

Lend

ing

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BDCs

Source: Preqin Investor Interviews, June 2017

Fig. 2: Investor Views on Strategies Presenting the Best Risk/Return Profile

Prop

ortio

n of

Res

pond

ents

Strategy

62%

40%

32%

20%16%

2%0%

10%

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Source: Preqin Investor Interviews, June 2017

Fig. 1: Investor Views on Fund Types Presenting the Best Opportunities at Present

Following a record year for private debt fundraising, we look at the increased LP appetite for mezzanine funds and how this is affecting the fundraising landscape.

Prop

ortio

n of

Res

pond

ents

Fund Type

41%37%

34%

23%

5% 4%

0%

5%

10%

15%

20%

25%

30%

35%

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45%

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Vent

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Source: Preqin Private Debt Online

Fig. 3: Fund Types Targeted by Private Debt Investors in the Next 12 Months

Fund Type

Prop

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Fun

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arch

es

INVESTOR APPETITE FOR MEZZANINE FUNDS

© Preqin Ltd. 2017 / www.preqin.com3 Private Debt Spotlight | August 2017

Fund III, the third largest mezzanine fund ever closed. The fund focuses on investments across West Europe and the US, with notable commitments from California State Teachers’ Retirement System (CalSTRS), Florida State Board of Administration and Metlife Insurance Company, among others.

The mezzanine funds that closed last year often did so above their initial targets, averaging 112% of target size after 18 months on the road (Fig. 6). In fact, all of the top 10 largest funds surpassed their initial targets – two by more than $1bn. Mezzanine funds have, on average, surpassed fundraising goals for each of the past six years, taking an average of 20 months to reach a final close.

Sixteen mezzanine funds have reached a final close so far in 2017, securing $4.0bn in aggregate capital. Funds closed this year have spent, on average, 27 months in market, and have met their targets. North America is the focus of 10 funds closed in 2017 YTD. One fund has surpassed $1bn in 2017: GoldPoint Mezzanine Partners IV reached a final close in April raising an aggregate $1.3bn (Fig. 7).

FUNDS IN MARKETThere are currently 316 private debt funds in market, seeking an aggregate $150bn. Of these, 62 are mezzanine funds, accounting for $14bn of targeted capital (Fig. 8). Since June 2016, the number of mezzanine funds on the road has decreased by 11%, yet the aggregate target capital has decreased at a far faster rate, declining by roughly 55% over the last year.

A third of mezzanine funds currently in market have been on the road for more than 18 months (Fig. 9). Half of funds have spent between seven and 18 months in market, and just 17% have been on the road for six months or less.

Two mezzanine funds in market are currently seeking upwards of $1bn: Falcon Strategic Partners V is targeting $1.25bn for investment in North America-based companies, and BlueOrange

9

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1012 13

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3.5 2.71.0

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2014 2015 2016 2017

No. of Funds Closed Aggregate Capital Raised ($bn)

Source: Preqin Private Debt Online

Fig. 5: Quarterly Mezzanine Fundraising, Q1 2014 - Q2 2017

Date of Final Close

0%

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8%

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18%

1 Yearto Sep-16

3 Yearsto Sep-16

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Direct Lending

Mezzanine

Distressed Debt

Private Debt

Source: Preqin Private Debt Online

Fig. 4: Private Debt: Rolling Horizon IRRs by Fund Type

22 22

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2011 2012 2013 2014 2015 2016 2017 YTD

Average Time Spent in Market (Months) Average Proportion of Target Size Achieved

Source: Preqin Private Debt Online

Fig. 6: Mezzanine Fundraising Momentum, 2011 - 2017 (As at July 2017)

Tim

e Sp

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n M

arke

t (M

onth

s) Average Proportion of Target Size Achieved

Year of Final Close

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INVESTOR APPETITE FOR MEZZANINE FUNDS

© Preqin Ltd. 2017 / www.preqin.com4 Private Debt Spotlight | August 2017

72 70

6063

20

31

14 14

0

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Dec-15 Jun-16 Dec-16 Jun-17

No. of Funds Raising Aggregate Capital Targeted ($bn)

Source: Preqin Private Debt Online

Fig. 8: Mezzanine Funds in Market over Time, 2015 - 2016

17%

25%

25%

8%

8%

17% 1-6 Months

7-12 Months

13-18 Months

19-24 Months

31-36 Months

More than 36 Months

Source: Preqin Private Debt Online

Fig. 9: Time Spent on the Road by Mezzanine Funds Currently in Market (As at July 2017)

Fig. 7: 10 Largest Mezzanine Funds Closed, 2016 - 2017 YTD (As at July 2017)

Fund FirmTarget Size

($mn)Final Size

($mn)Final

Close DatePrimary

Geographic Focus

GSO Capital Opportunities Fund III GSO Capital Partners 6,000 6,639 Oct-16 North America

HPS Mezzanine Partners III HPS Investment Partners 5,000 6,600 Dec-16 North America

Crescent Mezzanine Partners VII Crescent Capital Group 3,000 4,600 Dec-16 North America

Prudential Capital Partners V Prudential Capital Group 1,400 1,830 Dec-16 North America

Park Square Capital Partners III Park Square Capital Partners 1,360 1,367 Apr-16 Europe

GoldPoint Mezzanine Partners IV GoldPoint Partners 1,200 1,300 Apr-17 North America

CRG Partners III CRG 1,000 1,250 Dec-16 North America

Audax Mezzanine Fund IV Audax Mezzanine 1,000 1,200 Jul-16 North America

PA Direct Credit Opportunities Fund II Portfolio Advisors 750 740 Mar-17 North America

PineBridge Structured Capital Partners III PineBridge Investments 500 600 Mar-16 North America

Source: Preqin Private Debt Online

Capital Impact Fund is targeting $1bn for investment in Latin America & the Caribbean.

OUTLOOK

The private credit space has continued to evolve, with direct lending seemingly coming out on top in the eyes of both investors and fund managers. However, there are strategies across the debt spectrum which take advantage of diff erent lending conditions, and mezzanine fi nancing has seen a strong

push since 2016. The aggregate capital raised by the strategy in Q4 2016 is nearly equal to the total combined commitments of the previous seven quarters; factors such as its attractive risk/return profi le, together with positive investor sentiment certainly contributed to the record quarter. While the strategy may not average double-digit fundraising totals every year, it will remain an important piece of the private debt puzzle.

THE BURGEONING PRIVATE DEBT MARKET

Private Debt Spotlight | June 20175 © Preqin Ltd. 2017 / www.preqin.com

After the Institutional and Alternative Lending Conference in New York, Sylvia Owens from Aksia and Ryan Flanders from Preqin confront the key questions for LPs seeking to invest in the burgeoning private debt market.

There seems to be a continued debate as to where private debt fits within an LP’s portfolio – what are your thoughts and observations?RYAN We track over 2,400 LPs that have either invested in private credit historically and/or have future plans to at Preqin, and generally we see the allocation coming from the private equity portfolio. There are a couple of themes driving this observation: many legacy mezzanine and distressed debt allocations have been funded from the private equity sleeve, and also the illiquidity profile of private debt has similarities to the illiquidity of private equity, although they are quite different.

With that said, we have seen a number of different approaches. For example, we have observed distressed being bucketed into private equity and senior in the capital structure, with no to low leverage on the fund included in the fixed income part of the portfolio. My last point is that we have observed a growing number of investors carving out a specific private credit allocation in the portfolio that would include all opportunities in the space.

SYLVIA The low rate environment has led investors to consider alternate sources of current income generation, even if it means giving up near-term liquidity. Over the past few years, many new private credit investments have been made within fixed income buckets, usually direct lending strategies that are used as a fixed income “substitute”.

Senior lending in particular can be attractive versus high-yield bonds, given the potential to exchange fixed for

floating rate exposure (thereby decreasing sensitivity to interest rate duration), improve credit quality, and, at the same time, capture a premium to returns available in the public markets.

Separately, many investors are opting to create opportunistic hedge fund/private credit sleeves which can include a wide variety of private credit strategies including real estate debt, real assets debt and corporate debt, along with other more exotic credit strategies such as royalties, marketplace lending, leasing, regulatory capital relief and non-qualified mortgages. These allocations are designed to produce attractive risk-adjusted returns, while reducing correlation versus high yield and equities. This has become a growing focus given low-risk premia expectations across the equity markets.

How do you both define private debt? There seem to be conflicting answers out in the market.RYAN The dominant topic within private debt over the past few years has been direct lending that has mostly been focused on leveraged, cash flow transactions with minimal underlying hard assets. That is probably warranted, given the growth that the segment has seen over the time frame.

However, there are many options across the risk/return spectrum, featuring many investment profiles and underlying collateral for the loan (e.g. real estate, intellectual property, infrastructure and many others). On what we consider private debt at Preqin, we generally think about the illiquidity profile of the investment

opportunity and, as long as it is debt, not equity, and not publicly traded, we would argue it is private debt.

SYLVIA We have a fairly broad definition of private credit comprised of seven sectors: direct lending, distressed/special situations, mezzanine, specialty finance, structured credit, real assets credit and real estate credit, with more than half of our research coverage outside of the US. When people comment that private credit feels “crowded”, they often are referring to the onslaught of US and European direct lending funds that have been actively fundraising over the past several years as the opportunity set has expanded. While we continue to see compelling options within the direct lending space, we are seeing many of the most attractive risk-adjusted opportunities in the last four sectors (specialty finance, structured credit, real estate credit, real asset credit), along with EM/Asia strategies, simply because there is less capital chasing those deals.

There has been much conversation about growth in the asset class. How much has it actually grown and why?RYAN We have seen the asset class grow 4x from nearly $150bn in 2006 to just under $600bn as of last year. Much of that has been driven by the direct lending market, which has grown from less than $10bn raised in 2007 to $61bn raised in 2015 and 2016 combined. We are also tracking 286 funds currently targeting capital to the tune of $116bn. This historic and continued growth is the result of themes that have curbed traditional bank lending post the Global Financial Crisis,

THE BURGEONING PRIVATEDEBT MARKET- Ryan Flanders, Preqin & Sylvia Owens, AKSIA

THE BURGEONING PRIVATE DEBT MARKET

Private Debt Spotlight | June 20176 © Preqin Ltd. 2017 / www.preqin.com

AKSIA

Aksia provides research and portfolio advisory services on hedge fund, private credit, and opportunistic strategies to institutional investors.

Their clients have over $70bn committed to these alternative strategies and they represent experienced pension plans, insurance companies, government-related institutions, superannuation funds, endowments and foundations.

www.aksia.com

mostly in the US and Europe but with other locales becoming targets for non-bank direct lenders, such as certain parts of Asia.

Lastly, we have seen a pickup in the amount of distressed capital invested and raised over the last few years, drivers being some of the volatility in the energy and brick and mortar retail markets, and anticipation of some sort of downturn given the extended recovery period the US economy has witnessed.

How does an investor new to private credit create an allocation to the asset class?SYLVIA Every investor will approach this differently, depending on their governance structure and the reason for investing in private credit. The concept of private credit as an asset class is one that is gaining momentum across all types of investors as they seek ways to meet their required rates of return in a lower return environment.

That said, there are a few high-level factors that an investor may want to consider when contemplating a new allocation to private credit. First, what will be the source of capital? Will it be a new sleeve or replacing an existing allocation? What are the target returns? Will it be cross asset classes, and, if so, how will you decide whether certain asset types (such as real estate debt) will go into the private credit allocation or the traditional real estate bucket? Who at the organization will oversee this new allocation?

We have helped clients to implement a variety of approaches, including team efforts where PMs from fixed income, private equity and even real estate will come together to work on this new allocation. Finally, it is necessary to measure the success of a program once it is implemented, so picking the appropriate benchmark is critical.

Are there are any diligence considerations unique to private credit?SYLVIA Underwriting discipline and workout experience/capabilities are critical to the success of any private credit strategy. Given that many of these GPs are relatively new entrants to the space lacking pre-2008 track records, it is very important to diligence which GPs have demonstrated investing acumen (sourcing, consistent underwriting, patience and workout) and are not just opportunistically asset gathering. Identifying the realistic size of the target opportunity set is another consideration, in light of the rapid deployment of capital and aggressive fundraising, often with ever increasing fund sizes. There is always a concern of deterioration in credit underwriting standards when there are too many new entrants and capital chasing a given borrower base.

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+ Placement Agents + Dry Powder+ Fund Administrators + Compensation+ Law Firms + Plus much more...+ Debt Providers

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*Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equity secondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multi-manager funds.**Buyout deals: Preqin tracks private equity-backed buyout deals globally, including LBOs, growth capital, public-to-private deals, and recapitalizations. Our coverage does not include private debt and mezzanine deals.***Venture capital deals: Preqin tracks cash-for-equity investments by professional venture capital fi rms in companies globally across all venture capital stages, from seed to expansion phase. The deals fi gures provided by Preqin are based on announced venture capital rounds when the capital is committed to a company.

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PRIVATE EQUITY* HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT NATURAL

RESOURCES

INVESTORCOVERAGE

6,640Active

Private Equity LPs

5,224Active

Hedge Fund Investors

5,840Active

Real Estate LPs

3,113Active

InfrastructureLPs

2,794Active

Private Debt Investors

2,837Active

Natural Resources Investors

FUNDCOVERAGE

17,794Private Equity

Funds

24,429Hedge Funds

6,589PE Real Estate

Funds

1,189Infrastructure

Funds

2,344Private Debt

Funds

1,594Natural Resources

Funds

FIRMCOVERAGE

11,776Private Equity

Firms

9,039Hedge Fund

Firms

4,065PE Real Estate

Firms

519Infrastructure

Firms

1,483Private Debt

Firms

979Natural Resources

Firms

PERFORMANCECOVERAGE

5,854Private Equity

Funds

16,794Hedge Funds

1,719PE Real

Estate Funds

237Infrastructure

Funds

806Private Debt

Funds

504Natural Resources

Funds

FUNDRAISINGCOVERAGE

2,012Private Equity

Funds

15,911Hedge Funds

555PE Real

Estate Funds

179Infrastructure

Funds

315Private Debt

Funds

250Natural Resources

Funds

Alternatives Investment Consultants Coverage:

564Consultants Tracked

Funds Terms Coverage: Analysis Based on Data for Around

16,538Funds

Best Contacts: Carefully Selected from our Database of over

412,980Contacts

DEALS & EXITSCOVERAGE

BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE

81,638 Buyout Deals** and Exits

139,433 Venture Capital Deals*** and Exits

39,840Real Estate Deals

25,357Infrastructure Deals

2015 Annual CAIA CorporateRecogni on Award Winner

As at 1st August 2017

ALTERNATIVES COVERAGE

FIRMS FUNDS FUNDS OPEN TO INVESTMENT

INVESTORSMONITORED

FUNDS WITH PERFORMANCE DEALS & EXITS

27,861 50,214 19,090 14,564 25,914 286,268

INDUSTRY NEWS

© Preqin Ltd. 2017 / www.preqin.com8 Private Debt Spotlight | August 2017

There are 316 private debt funds currently in market, targeting an aggregate $150bn in capital. Direct lending vehicles represent the largest proportion of funds raising (47%) and capital targeted (44%). The largest of these currently raising is HPS Specialty Loan Fund 2016, which targets $3.5bn in capital and is focused on both North America and Europe.

Of the 10 largest private debt funds on the road, four are direct lending vehicles targeting an aggregate $12bn in capital, four are distressed debt vehicles seeking an aggregate $16bn and two are special situations targeting an aggregate $12bn. The largest of all funds currently raising is US-focused 3G Special Situations Fund V, a special situations vehicle managed by 3G Capital, targeting $10bn in capital.

Twenty-seven private debt vehicles have reached a final close since the beginning of May 2017, raising an aggregate $14bn in capital. Of those, the largest is Hayfin Special Opportunities Fund II, a special situations vehicle managed by Hayfin Capital Management. The fund secured over $1.9bn at final close, surpassing its target size of $1.7bn, with a $200mn commitment from Pennsylvania Public School Employees’ Retirement System.

Direct lending vehicles represent 13 of the 27 funds closed since early May, and $6.4bn of the aggregate capital raised. Six mezzanine vehicles, five special situations vehicles and three distressed debt funds also reached a close in the period. Seventeen funds in market are US focused, and the remaining 10 are a mix of Europe-, Asia-, Africa- and globally focused vehicles.

North America-focused mezzanine vehicle ABRY Senior Equity V, managed by ABRY Partners, received commitments from 11 known public investors and closed in June 2017. The commitments were led by $83mn from New York State Teachers’ Retirement System, $60mn from Florida State Board of Administration and $50mn from San Francisco Employees’ Retirement System.

Centerbridge Special Credit Partners II, a distressed debt vehicle managed

by Centerbridge Capital Partners, also closed in June 2017 with 10 known public investors. The commitments were headlined by $150mn from both North Carolina Department of State Treasurer and Oregon State Treasury.

INDUSTRY NEWS

FUNDS IN MARKET

Our Chart of the Month shows investors’ preferred lifetime of a private debt vehicle. The largest proportion (45%) of investors surveyed favour a fund length of between three and five years and 43% of respondents prefer a five to seven year fund length. Just 2% of respondents prefer a fund length of one to three years, and only 9% prefer a fund length of seven years or more. Given the ability of closed end private debt investments to provide illiquidity premia to LPs above that of traditional fixed income investments, allocators appear content to lock up capital for up to seven years, rarely targeting funds with a longer timeframe.

The investor interviews were carried out in June 2017 by Preqin’s global research teams, and involve a diverse sample of investors by AUM, location and more.

2%

45%

43%

9%

0% 10% 20% 30% 40% 50%

1-3 Years

3-5 Years

5-7 Years

7 Yearsor More

Source: Preqin Investor Interviews, June 2017

Investors’ Preferred Private Debt Fund Term Length

CHART OF THE MONTH

In this month’s industry news, we reveal our Chart of the Month, which details the preferred fund term lengths as stated by investors, as well as examining sample funds both recently closed and currently in market.

Proportion of Respondents

RECENTLY CLOSED FUNDS

RECENT INVESTOR COMMITMENTS

THE FACTS

© Preqin Ltd. 2017 / www.preqin.com9 Private Debt Spotlight | August 2017

PRIVATE DEBT DEALS INH1 2017

The first half of 2017 saw robust private lending activity in North

America, which was home to 68% of private debt deals tracked by Preqin (Fig. 1). Due to a confluence of factors such as the regulatory environment, political structures and the slowdown of traditional lending, the private debt market has been mainly concentrated in North America and Western Europe. Activity up until the mid-2000s was dominated by distressed debt and mezzanine financing, but with direct lending activity having picked up momentum in the past decade, lenders

throughout the capital stack continue to find many sponsored and non-sponsored deal targets in North America and Europe.

More than 1,200 private debt fund managers are focused on opportunities in Europe and North America, but there is certainly private lending activity in other regions as well: Preqin’s Private Debt Online tracks 297 private debt managers targeting Asia, in addition to 227 focused across the Middle East, Africa and South America. The most transactions in H1 2017 took place in the industrials sector, which

accounted for 30% of all deals, double the proportion of the next most prominent industry (Fig. 2).

As nearly 80% of tracked private debt deals are private equity sponsored, the private debt deals market is quite correlated to that of the buyout space. The remaining 20% of deals occur as non-sponsored transactions, issuing debt directly to borrowers that are not supported by private equity managers, and therefore can present a different risk profile entirely when compared to a sponsored firm.

68%

29%

3%

North America

Europe

Asia & Rest of World

Source: Preqin Private Debt Online

Fig. 1: Private Debt Deals Completed in H1 2017 by Location

30%

15%

13%

12%

10%

6%

14% Industrials

IT

Business Services

Healthcare

Consumer Discretionary

Food & Agriculture

Other

Source: Preqin Private Debt Online

Fig. 2: Private Debt Deals Completed in H1 2017 by Primary Industry

Fig. 3: Sample Private Debt Deals Completed in H1 2017

Portfolio Company Investment Type Primary Industry Debt Financing Provider(s) Debt Size ($mn) Capital Structure

Cole-Parmer Instrument Company Buyout Healthcare

Angel Island Capital, Antares Capital, Golub Capital, Jefferies

Capital Partners630 Senior Debt

Soho House Group Recapitalization Consumer Discretionary Permira Debt Managers 351 Senior Debt

Mood Media Corporation Public-to-Private Telecoms, Media & Communications HPS Investment Partners 315 Senior Debt

Rex Energy Growth Energy & Utilities Angelo, Gordon & Co 300 Senior Debt

Halogen Software, Inc. Add-on IT Golub Capital 286 Unitranche

Riverview Power Recapitalization Energy & Utilities Ares Capital 250 Senior Debt

TestEquity LLC Buyout IT NXT Capital 116 Senior Debt

Echelon Growth Energy & Utilities Monroe Capital 100 Senior Debt

Results Physiotherapy Growth Healthcare Golub Capital 71 Unitranche

Catalina Holdings (Bermuda) Growth Business Services Twelve Capital 46 Junior/Subordinated

Source: Preqin Private Debt Online

As seen in Preqin’s Quarterly Private Debt Update, Q2 2017, we examine the deals that took place in the first half of 2017, breaking them down by location and industry focus.

THE FACTS

© Preqin Ltd. 2017 / www.preqin.com10 Private Debt Spotlight | August 2017

SAMPLE INVESTORS TO WATCH IN H2 2017Using Preqin’s Private Debt Online, we have collated a list of sample investors that are actively seeking investments in the year ahead.

SACRAMENTO COUNTY EMPLOYEES’ RETIREMENT SYSTEMType: Public Pension FundLocation: Sacramento, CAAUM: $8.1bnSeeking to invest $200mn in three direct lending vehicles and one opportunistic vehicle. It primarily targets US-focused funds, but is open to global opportunities.

BIMCORType: Private Sector Pension FundLocation: Quebec, CanadaAUM: CAD 20.0bn ($15.4bn)BIMCOR is seeking investments in distressed debt, special situations and mezzanine vehicles on a global scale.

NORDEA INVESTMENT MANAGEMENTType: Multi-Family OfficeLocation: Stockholm, SwedenAUM: EUR 217.0bn ($247.7bn)Nordea Investment Management will commit up to €300mn across six-eight funds, targeting special situations and distressed debt vehicles.

FUTUREGROWTH ASSET MANAGEMENTType: Infrastructure FirmLocation: Cape Town, South AfricaAUM: ZAR 170.0bn ($12.6bn)Futuregrowth Asset Management is seeking investments in South Africa-focused direct lending and mezzanine vehicles.

TOKIO MARINE ASSET MANAGEMENTIType: Asset ManagerLocation: Tokyo, JapanAUM: $56.0bn Tokio Marine Asset Management is seeking commitments to North America- and Europe-focused direct lending and mezzanine vehicles.

CATHOLIC SUPERType: Superannuation SchemeLocation: Melbourne, AustraliaAUM: AUD 7.5bn ($5.7bn)The superannuation scheme is seeking North America-focused investments, and has a preference for direct lending and distressed debt vehicles.

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CONFERENCES

© Preqin Ltd. 2017 / www.preqin.com12 Private Debt Spotlight | August 2017

CONFERENCESSEPTEMBER 2017

Conference Dates Location Organizer Preqin Speaker Discount Code

Total Alts 2017 7 - 8 September 2017 San Francisco, CA IMN - -

8th Specialty Finance Summit 13 - 14 September 2017 New York iGlobal Forum - -

Women's Investment Management Leadership Summit 14 September 2017 New York Opal Financial

Group - -

Emerging Managers Summit 14 - 15 September 2017 New York Opal Financial Group - -

Ai CEO Institutional Investment Summit 2017 18 September 2017 New York Africa Investor - -

LPGP Connect Private Debt Chicago 19 September 2017 Chicago, IL LPGP Connect Ryan Flanders -

DM Alternatives Conference 21 - 22 September 2017 Seoul DarcMatter - -

SuperReturn Asia 25 - 28 September 2017 Hong Kong KNect365 Mark O'Hare Felice Egidio

10% Discount – FKR2433PRQW

IPE in Person – Investing in Private Debt 25 - 26 September 2017 Amsterdam IPE Ryan Flanders -

Global Distressed Investments Forum 26 September 2017 London WJ Global Group - -

Channel Islands Funds Forum 2017 27 September 2017 Jersey BL Global Amy Bensted Tom Carr -

OCTOBER 2017

Conference Dates Location Organizer Preqin Speaker Discount Code

Australian Investors Summit 2017 5 - 6 October 2017 Sydney marcus evans Summits - -

Latin Private Wealth Management Summit 9 - 10 October 2017 Cancún marcus evans

Summits - -

FundForum Middle East & Africa 9 - 11 October 2017 Dubai KNect365 - -

EURUS 2017 12 October 2017 Zürich EURUS Forum - -

Global Investors Summit 2017 16 - 18 October 2017 Montreux marcus evans Summits - -

C4K Investors Conference 18 - 19 October 2017 Toronto Capitalize for Kids - -

Family Office & Private Wealth Forum – West 25 - 27 October 2017 Napa, CA Opal Financial Group - -

Canadian Specialty Finance Summit: Accelerating Alternative Lending in 2018 26 October 2017 Toronto iGlobal Forum - -

Private Wealth Management Summit APAC 2017

30 October - 1 November 2017 Macao marcus evans

Summits - -

NOVEMBER 2017

Conference Dates Location Organizer Preqin Speaker Discount Code

SuperReturn Private Credit 1 - 2 November 2017 Chicago, IL KNect365 Mark O'Hare 10% Discount – FKR2447PRQW

European CLO Summit 2 November 2017 London Opal Financial Group - -

9th Annual Women’s Alternative Investment Summit (WAIS) 2 - 3 November 2017 New York Falk Marques Group - -