Mid-Market

Sector focus is changing as lenders reassess the mid-market.

Yields from private debt are currently at decade highs, potentially making this a very attractive vintage for the asset class, says Bill Sacher, partner and head of private credit at Adams Street Partners.

Private equity sponsors have the confidence to step back into the market after a sluggish 2023, say Bridgepoint Credit’s Paul Johnson and Andrew Cleland-Bogle.

With low levels of leverage, enhanced structural protections and limited competition, the European lower mid-market is the place to be, say Apera Asset Management partners Klaus Petersen and David Wilmot.

LPs are attracted by the strong performance of established players.

Lenders are keen to diversify away from cashflow-based lending into more esoteric areas.

Impact funds are winning favour in Europe among LPs looking for differentiated strategies.

The lower mid-market offers distinct advantages in all kinds of macroeconomic weather, say NXT Capital co-heads Ted Denniston and Joe Lazewski.

NAV loans are an increasingly popular tool for accessing liquidity.

Demand for private credit is growing in Asia and offers attractive risk-adjusted returns.