High Yield Debt Funds
This page summarizes fundraising activity and fee structures for high-yield debt funds for the period 2006 through 2025.
The first exhibit presents annual capital raised, number of funds closed, and average fund size.
The second exhibit summarizes management fees and promote structures for funds raised.
High-Yield Debt Fundraising Trends (2006–2025)
This exhibit shows annual capital closed in blue bars and a secondary metric displayed as a line.
When selected, the green line represents the number of funds closed in each year.
Alternatively, the purple line represents average fund size.
The dropdown menu above the chart allows the user to switch between these two views.
Summary of Fee Structures on High-Yield Debt Funds (2006–2025)
This exhibit summarizes key terms for high-yield debt funds raised between 2006 and 2025.
Base management fees are reported on both committed and contributed capital, along with equal-weighted averages, value-weighted averages, medians, and observed ranges.
The table also reports the prevalence of catch-up provisions and compares preferred returns and promote structures for funds with and without such provisions.
Base Fees
|
Committed Capital |
Contributed Capital |
| Equal-Weighted Average |
1.48% |
1.26% |
| Value-Weighted Average |
1.44% |
1.29% |
| Median |
1.50% |
1.28% |
| Maximum |
2.50% |
2.00% |
| Minimum |
0.00% |
0.00% |
Pref & Promote Structures
|
With Catch-Up |
Without Catch-Up |
Total |
| Count of Funds |
336 |
189 |
525 |
| Percentage |
64.0% |
36.0% |
100.0% |
Preferred Return
|
With Catch-Up |
Without Catch-Up |
Average |
| Equal-Weighted Average |
8.72% |
8.61% |
8.65% |
| Value-Weighted Average |
8.68% |
8.41% |
8.56% |
| Median |
9.00% |
8.00% |
9.00% |
| Maximum |
12.00% |
20.00% |
20.00% |
| Minimum |
5.00% |
5.00% |
5.00% |
GP's Tier 1 Split
|
With Catch-Up |
Without Catch-Up |
Average |
| Equal-Weighted Average |
54.02% |
20.35% |
41.9% |
| Value-Weighted Average |
55.14% |
19.51% |
43.6% |
| Median |
50.00% |
20.00% |
50.0% |
| Maximum |
100.00% |
40.00% |
100.0% |
| Minimum |
0.00% |
5.00% |
0.0% |
Catch-Up Return
|
With Catch-Up |
|
Average |
| Equal-Weighted Average |
18.21% |
|
18.21% |
| Value-Weighted Average |
18.45% |
|
18.45% |
| Median |
20.00% |
|
20.00% |
| Maximum |
50.00% |
|
50.00% |
| Minimum |
0.00% |
|
0.00% |
GP's Tier 2 Split
|
With Catch-Up |
|
Average |
| Equal-Weighted Average |
22.87% |
|
22.87% |
| Value-Weighted Average |
21.99% |
|
21.99% |
| Median |
20.00% |
|
20.0% |
| Maximum |
80.00% |
|
80.0% |
| Minimum |
5.00% |
|
5.0% |
DATA SOURCE:
Green Street Advisors
These analyses are intended solely for academic purposes. No warranty or representation is made with regard to their accuracy.