Octus Radio
Conversations With Reorg: DWS’ Jens Witzke and Marcus Herbig from DWS Group
Aug 4, 2023
Head of private credit Jens Witzke and Head of structured income Marcus Herbig from DWS Group discuss fundraising challenges, financial covenants, LP safety in larger funds, and key trends for the second half of the year in Reorg's latest Expert Views series.
26:24
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Quick takeaways
- Private debt funds are experiencing a shift towards larger deal sizes beyond 250 million due to increased market acceptance and available capital.
- Financial covenants, focusing on leverage and liquidity, are crucial for funds in the current volatile market, requiring careful calibration to prevent excessive risk exposure.
Deep dives
Fundraising Environment and Transaction Sizes
The fundraising environment for private debt funds has changed significantly due to macroeconomic shifts, such as moving from a low to a positive yielding environment. Initial fund ranges have also increased from 10-50 million to deals beyond 250 million. The market's transaction sizes have notably grown, reaching deals beyond 300-400 million, reflecting increased acceptance and available capital in the market.
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