Chart of the week: direct lending funds from 2008-2011 provide hearty returns

Direct lending funds have been feeding the growth in the private debt market. Due to their fixed-income style and safe risk/return profiles, they are very attractive to investors. Their production is peaking within 2008-2011 vintages, topping out at a nearly 14 percent internal rate of return. Younger funds are poised to reach new IRR heights as they catch up and mature.