---
title: Private debt
description: The investment of debt instruments to companies, via direct lending, mezzanine, and or microcredit.
---

# Private debt

![8801735d-31b4-419a-a5f1-f6c09c03793c](https://phenixcapitalgroup.com/hs-fs/hubfs/Website%20images/New%20website%20images/8801735d-31b4-419a-a5f1-f6c09c03793c.jpg?width=800&height=533&name=8801735d-31b4-419a-a5f1-f6c09c03793c.jpg)

## Private debt, what is it?

Private debt is the investment of debt instruments to companies, via direct lending, mezzanine, and or microcredit.

In our report *IMPACT REPORT: DEEP DIVE ON PRIVATE DEBT FUNDS* we highlight that despite a drop in the number of funds launched in 2020, capital commitments doubled compared to 2019. Next to the insights and analytics provided by our Impact Database, the report also features interviews with practitioners managing Private Debt impact funds: ACTIAM and Tikehau Capital.

 

![Impact Report covers](https://phenixcapitalgroup.com/hs-fs/hubfs/Impact%20Reports/NEW%20COVERS%20resized/Impact%20Report%20covers.png?width=241&height=341&name=Impact%20Report%20covers.png)

[![Download report](https://no-cache.hubspot.com/cta/default/19884981/9932ea63-95d7-4ab2-a0d9-4c8be1c3b831.png)](https://cta-redirect.hubspot.com/cta/redirect/19884981/9932ea63-95d7-4ab2-a0d9-4c8be1c3b831)

## Private debt strategies

 Private debt can range in size and scale, being implemented in different forms, such as via direct lending, mezzanine, and microcredit.

- **Direct lending: **A specialised form of private debt, in which loans are made to middle-market companies. It is the private debt strategy with lower risk, achieved by using collateral.
- **Mezzanine: **A specialised form of financing in which loans are subordinated to banks, with no collateral. It is the most equity-like form of private debt.
- **Microcredit:** A common form of microfinance, characterised by small loans to individuals or small companies. ** **

According to our Impact Database, private debt funds make up 17 % of the funds tracked by the database with 15 % of the current fundraising.

## Most targeted SDGs

SDG 8 Decent Work and Economic Growth is the top targeted Sustainable Development Goal both historically and for open funds, followed by SDG 1 No Poverty, SDG 10 Reduced inequalities, SDG 7 Affordable and Clean Energy and SDG 9 Industry, Innovation and Infrastructure.

 

![SDG 1 - No poverty](https://phenixcapitalgroup.com/hubfs/Website%20images/New%20website%20images/SDGs/SDG%201%20-%20No%20poverty.png)

![E-WEB-Goal-09](https://phenixcapitalgroup.com/hubfs/Website%20images/New%20website%20images/SDGs/E-WEB-Goal-09.png)

![SDG 8 - Decent work and economic growth](https://phenixcapitalgroup.com/hs-fs/hubfs/Website%20images/New%20website%20images/SDGs/SDG%208%20-%20Decent%20work%20and%20economic%20growth.png?width=1536&height=1536&name=SDG%208%20-%20Decent%20work%20and%20economic%20growth.png)

![E-WEB-Goal-07](https://phenixcapitalgroup.com/hubfs/Website%20images/New%20website%20images/SDGs/E-WEB-Goal-07.png)

![SDG 10 - Reduced Inequalities](https://phenixcapitalgroup.com/hubfs/Website%20images/New%20website%20images/SDGs/SDG%2010%20-%20Reduced%20Inequalities.png)

## Contact us to learn more

 

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