Fundraising for private debt funds this year is on pace to cement the asset class's growing role in corporate finance.
Why it matters: Private debt funds are unregulated pools of capital, managed by investors who lend the money to companies. They have grown rapidly in the post-financial crisis era, as traditional investment banks have pulled back on some of their riskiest lending.
What's new: Private debt funds are tracking to top the average $103 billion raised annually in 2017-2019, and exceed any year before that, according to new data from Preqin.
Yes, but: Last year's monster total of $148 billion might be an anomaly — for now — as investors sought loads of dry powder to lend to pandemic-stricken businesses.
Go deeper: Trading activity expands in illiquid private debt market, following private equity playbook