Mid-Market

A high-touch approach to working with borrowers and private equity sponsors plays a key role in portfolio management, says Kim Trick, co-chief credit officer and head of underwriting at Twin Brook Capital Partners.

A robust macro backdrop and strong Nordic PE community combined with expert pricing capabilities and leading ESG scoring means a lower mid-market premium, says Sandro Näf, co-founder and CEO of Capital Four.

We see a historic opportunity to achieve double-digit unlevered returns on senior secured debt through rigorous underwriting and mindful credit selection, says Blair Faulstich, senior portfolio manager at Benefit Street Partners.

Investors are seeking reassurance about diversity, equity and inclusion.

Opportunistic credit funds are seeking to benefit from macro uncertainty.

Investors continue to enjoy a strong debt market, with newer transactions potentially offering lower leverage and increased returns, say Barings’ Adam Wheeler and Mark Flessner.

US direct lenders are seeking to gain an edge with industry knowledge.

How do you characterise the state of the mid-market? There’s something of a reality check going on.

Despite macroeconomic headwinds and the rising cost of capital, transaction activity looks set to pick up in the second half of 2023, says Sarah Roche, head of capital markets and managing director at Twin Brook Capital Partners.

Private credit has served the mid-market for years, but now the sector is expanding into larger transactions with great success, explains Lee Kruter, partner and head of performing credit of GoldenTree Asset Management.