Mid-Market

Private debt’s most popular strategy retains a lot of appeal for mid-market investors, but appetite for more innovative structures is growing.

Investors wishing to benefit from positive tailwinds across US, Europe and Asia-Pacific would do well to consider a global direct lending strategy that looks across all three markets, say Tyler Gately, Justin Hooley and Orla Walsh at Barings.

Private credit firms and investors look at how to make the best of what’s on offer in the mid-market amid a challenging macro environment.

Intensifying geopolitical uncertainty has implications for deal volumes, terms and pricing throughout the mid-market private credit industry, but it still shows opportunities for growth.

Investors are bullish on mid-market lending despite default and recession risks, and even as swelling inflows are leading some private debt GPs to do larger-cap deals.

The recent market volatility has created both challenges and new prospects, says Ian Jackson, head of strategic opportunities at Permira Credit.

The European mid-market is becoming increasingly crowded, but there are a few ways that LPs can identify leaders in the space, writes Sven Gralla of LBBW Asset Management.

As managers assess tariff impacts, sectors such as healthcare and business services are seen as safe bets. Meanwhile, domestically focused businesses may stand to benefit from the decline of globalisation.

The joint venture will invest up to $1.7bn in US mid-market borrowers, and leverage their distinct strengths.

All three subgroups of private credit posted positive returns in 2024, with mezzanine loans leading the pack.