Topping with private capital assets under management (AUM). $11.9 trillion in 2021* – up 50% over the past two years – the latest issue of Private Capital Insights discusses the ongoing global growth and impact of private funds, and examines the drivers of future demand across direct lending, infrastructure, real estate and private Equity, distressed debt, structured credit and growth capital.
The market study examines debt funds’ appetite for increasingly significant unitranche deals and how newcomers to direct lending are changing market dynamics alongside bank lenders and the public markets. The report also looks at the convergence between the private equity and private credit markets to offer hybrid instruments across the capital structure, and discusses the importance of ESG for asset managers both in the initial due diligence of transactions and during entire lifetime of investments.
The report covers a number of topics that will continue to shape the global market in 2022, including:
- Structured Credit – Impact of record CLO issuance, continued ESG embedding and a supportive regulatory environment for sector growth
- Direct Lending – Drivers behind the convergence of business conditions
- Infrastructure – The increasing convergence of renewable energy, digital infrastructure and other asset classes
- Mutual funds – increased SEC focus on private funds
- Real Estate – Emerging investment themes: from “sheds and beds” to premium offices and second homes
- Growth and Structured Capital – Increased structuring and broadening of the investor universe in the US and Europe
“The past year has seen explosive growth in the private equity sector, characterized by ever-increasing transaction sizes, record assets under management, new entrants and increased competition,” he said Yen totala partner in the London Office of Latham & Watkins, who also serves as Global Co-Chair of Private Capital. “Our latest report examines a number of key drivers that will continue to shape this rapidly evolving market and we see significant opportunities for nimble investors across a range of asset classes.”
“The strong growth and influence of private funds has continued at a rapid pace,” he said Paul SheridanGlobal Co-Chair of Private Capital at Latham & Watkins and Partners in Washington, D.C Office. “Despite market disruptions, the fund managers have successfully navigated and confronted the many challenges of the COVID-19 pandemic, demonstrating a resilience that we expect will continue to fuel appetite for creative and flexible capital solutions in the year ahead.”
Latham’s market-leading team advises investors, lenders and sponsors on how to structure, value, commit capital, manage and execute the myriad of investment opportunities in global markets and industries. The law firm draws on the impressive expertise of the practice in the USA, Europethat middle Eastand Asia Seamlessly advising market participants on all aspects of their business when deploying private capital, from fund formation, fundraising and regulatory matters to analysis, structuring and execution of transactions and portfolio management.
* Latham & Watkins / Preqin tactical opportunities
About Latham & Watkins
Latham & Watkins delivers innovative solutions to complex legal and business challenges around the world. From a global platform, our attorneys advise clients on high-stakes market-shaping transactions, litigation and litigation and demanding regulatory matters. Latham is one of the world’s largest providers of pro bono services, relentlessly supports initiatives to promote diversity within the firm and the legal profession, and is committed to researching and promoting environmental sustainability.
Notes for editors
1 Latham & Watkins operates worldwide as a limited liability partnership organized under US law State of Delaware (USA) with affiliated limited partnerships conducting the practice in France, Hong Kong, Italy, Singaporeand the Great Britain and as an affiliated partnership that runs the practice in Japan. Latham & Watkins operates in Israel through a limited liability company. Latham & Watkins operates in South Korea as a foreign legal advice office. Latham & Watkins works with the law firm of Salman M. Al-Sudairi in which Kingdom of Saudi Arabia.
SOURCE Latham & Watkins