Mid-Market

As investors place greater emphasis on diversification, this often-overlooked sector is gaining attention – despite the risks.

Finding new ways for US lower mid-market borrowers to ‘get to yes’ is creating opportunities for flexible managers that can put capital to work quickly, says Metropolitan Partners Group’s Daniel Leger.

Inside: Private credit’s DPI dilemma; How bank tie-ups are redefining the mid-market; Why the biggest managers are moving into the lower mid-market; Expert analysis from industry leaders; And much more…

As the US and European private credit markets become increasingly saturated, investors are turning their attention to Australia, says FC Capital’s chief executive officer, Christian Brehm.

Investor demand for private debt has flourished, but strong alignment will distinguish the highest-quality lenders, say Corinthia Global Management’s Craig Shirey, Mark Wilton and Boris Okuliar.

The European mid-market remains in good health, benefiting from market dynamics that set it apart from the US, says Peter Arnold, head of European private markets at LBP AM European Private Markets.

Europe’s structural advantages create a compelling opportunity set for private credit investors, according to Andrew Cleland-Bogle, partner and head of direct lending, and Stephen Escudier, partner and co-head of credit opportunities, at Bridgepoint Credit.

Time-tested underwriting principles, conservative leverage structures and active portfolio management will differentiate managers in volatile markets, say TPG Twin Brook’s Christopher Hendrix, Tony Maggiore and Evan Larsen.

Mattis Poetter of Arcmont Asset Management and Mat Linett of Churchill Asset Management explain why the picture for mid-market lending remains compelling, despite negative headlines.

With the upper end of the mid-market becoming more competitive, questions turn to the risk of private debt’s big hitters moving further downstream.