Asset
managers are seeking to raise almost $300bn to plough into private lending
deals with groups such as Goldman Sachs and Oaktree.
While publicly traded debt and equity securities have surged in
price thanks to stimulus packages, private credit has yet to become saturated.
Goldman Sachs is
looking to raise $14bn for its West Street Strategic Solutions Fund I, above
the $5bn to $10bn target it had first set out. Oaktree, the investment group
founded by Howard Marks, is raising a $15bn fund to invest in distressed
corporate credit. And other big funds, including the $9bn private credit fund
recently secured by the investment group HPS, are at work to write big cheques
to medium and large-sized companies.
Funds are estimated to
be sitting of $272bn of ‘dry powder’ to invest in private credit.