So far, 2019 has not been a good year for the distressed debt funds. Only four such funds have closed as of mid-May having raised just USD 2.5bln. The slow start to 2019 follows two years of declining investor commitments to distressed debt funds. And at the same time, private debt fundrasing has reached record heights, the Institutional Investor writes in an article.

One of the reason may be that direct lending funds have increased in popularity. Another reason can be the dry powder build-up. Uninvested capital has grown by 82% since 2013, even as total assets under management have only increased by 19%.

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