Mid-Market

The European mid-market is proving fertile ground for more complex capital solutions.

Higher returns and a broad opportunity set are bolstering the outlook for private debt in Europe, says Pemberton Asset Management’s Robert Wartchow, but a consistent, credit first investment approach is critical.

A flexible offering and established track record remain key in the European lower mid-market, say Investec’s Helen Lucas, Alexandre Neiss and Kai Stengel.

Some US mid-market borrowers are finding things tough, but there can be a lot of value in helping them through their problems.

They co-operate but also aggressively compete with each other. But what exactly are they compromising on and fighting over? We take a deep dive into the places where banks meet fund managers.

We’re still only in the bottom of the first inning of the ‘destruction’ caused by the growth and venture space in late 2021, says the fund manager’s CEO.

New research found just 10-15% of mid-market private credit loans are scheduled to mature in the next two years.

Targeting lower middle market borrowers offers a pricing premium and better lender protections, but a long-term commitment to this segment is critical, says Rich Christensen, senior partner at TPG Twin Brook.

The European lower mid-market is home to attractive niche sectors that are decoupled from macroeconomic uncertainty, says Andreas Klein, head of private debt at Pictet Asset Management.

KBRA says its assessment portfolio experienced ‘only a slight deterioration’ in interest rate coverage.