Mid-Market

The deal, expected to close this year, will bring new capital to the CLO platform as Principal and Nippon exit.

US lenders and investors attempt to keep pace with a rapidly evolving inflationary and political environment.

Investors are carving out more sophisticated, granular and nuanced private credit allocation strategies capable of delivering real alpha, says Balance Point Capital partner Adam Sauerteig.

Both senior lending and junior capital dealflow are poised for a significant resurgence as uncertainty eases and M&A activity returns, say Churchill Asset Management’s Derek Fricke and Jill White.

This marks the largest deal of its kind, as private debt investors look to continuation vehicles for liquidity.

The uncertain macro backdrop makes European mid-market direct lending an attractive place to invest right now, say AlbaCore Capital Group’s Bill Ammons and Luke Gillam.

Industry data focused on mid-market companies shows several reasons for private credit funds to be optimistic about this segment of the market.

Direct lending may be the most popular strategy for private debt investors, but heightened competition for deals means lenders are branching out.

An uptick in M&A may not yet have materialised, but the direct lending market remains well positioned for growth, says Michael Occi, a managing director in Morgan Stanley’s private credit team.

Increasing scrutiny into debt portfolios’ resilience and rapidly changing growth projections will determine the future of mid-market lending activity.