Understanding Private Debt: a market growing in size and opportunity

By Harry Bruintjes , Partner at Crossings People | Talent Advisory | Strategy, M&A and Investment Management | Interim Management

1. What is Private Debt?

Definition, Market and Overview

Private debt refers to debt investments that are not financed through public markets. Instead, these are direct loans provided by non-bank institutions to private companies, often for purposes such as growth financing, leveraged buyouts, or real estate development. Unlike public debt, such as bonds traded on open markets, private debt transactions are typically private agreements between the borrower and lender.

The IMF (April 2024, Global Financial Stability Report) states that the rapidly expanding global Private Credit market is valued at approximately $2 Trillion, with around three quarters of it currently located in the USA. In the USA, the market share of private credit is currently approaching that of syndicated loans and high-yield bonds. Private credit has been outpacing other asset classes (not private equity) delivering high returns (as of 2000) with what appears to be relatively low volatility. Institutional investors such as pension funds and insurance companies have eagerly invested in funds that, though illiquid, offered higher returns aand less volatility.

Preqin is forecasting that private credit assets under management will grow in size to $2.8 Billion, by the end of 2028, rising from $272 Billion in 2007. This would imply an average growth rate from 2007 till 2028 of about 11% annually.

The private credit market in Europe has also grown significantly and is now well-established. As of 2023, it accounted for a substantial portion of the global market, with the European market for sub-investment grade corporate credit becoming a key player. The European private credit market has assets under management totaling around $500 billion, contributing significantly to the global total. In Europe, private credit now finances a significant share of leveraged buyouts and other transactions, with the share of such transactions rising from 27% in 2020 to 56% in 2023 (KKR Insights, March 2024, Michael Small).

It is anticipated that the growth of the private credit market will persist due to robust investor demand for alternative yield opportunities. Recent and longer term private credit returns have been healthy despite the headwind from near-zero interest rates that existed until central banks started hiking rates in early 2022. Through september 30, 2023, US direct lending funds returned more than 11% over the preceding 12 months (Market insights, Cambridge Associates, April 2024, Wade O'Brien).

Private debt encompasses a range of instruments, including direct lending, mezzanine financing, distressed debt, and special situations. These instruments cater to different risk appetites and return expectations, providing flexibility and tailored financing solutions to companies that may not have access to traditional bank financing or public markets.

Types of Private Debt

• Direct Lending: Non-bank institutions directly lend to small and medium-sized enterprises (SMEs) or larger companies. These loans can be senior secured loans, unitranche loans, or subordinated loans. Senior secured loans have the highest priority in the event of a default, while subordinated loans are lower in the repayment hierarchy but often offer higher yields.
• Mezzanine Financing: This is a hybrid of debt and equity financing, often used to finance the expansion of existing companies. Mezzanine debt is subordinated to senior debt but has priority over equity. It typically includes a mix of fixed interest and an equity component, allowing investors to benefit from the company’s growth.
• Distressed Debt: This involves purchasing the debt of companies in financial trouble at a discount, with the expectation of turning around the company or gaining control through restructuring. Investors in distressed debt aim to buy low, improve the company’s situation, and sell high or benefit from the turnaround.
• Special Situations: Investments in companies undergoing significant changes, such as mergers, acquisitions, or restructurings. Special situations can offer high returns but come with higher risk due to the uncertain outcomes of these significant corporate events.

Key Characteristics

• Illiquidity: Private debt is less liquid compared to public market investments, meaning it cannot be easily sold or traded. This illiquidity is a trade-off for potentially higher returns.
• Higher Yields: Due to the higher risk and illiquidity, private debt typically offers higher yields than comparable public market instruments, attracting investors seeking better returns.
• Customization: These debt instruments can be tailored to meet the specific needs of the borrower, providing more flexibility than traditional bank loans or public debt. This customization can include tailored covenants, repayment schedules, and interest rates.
• Relationship-Driven: Private debt investments often rely on strong relationships between the borrower and lender, with detailed due diligence and bespoke terms. This relationship-driven approach helps manage risk and align interests.

2. Why is Private Debt Growing Fast?

Market Dynamics

The private debt market has seen significant growth over the past decade, driven by various factors:

• Bank Regulation and Constraints: Post-financial crisis regulations, such as Basel III, have increased capital requirements for banks, making it more difficult and less profitable for them to extend loans to SMEs and other high-risk borrowers. This regulatory environment has created opportunities for private debt providers to fill the gap, stepping in where traditional banks have pulled back.
• Investor Demand for Yield: In a prolonged low-interest-rate environment, institutional investors like pension funds, insurance companies, and endowments have sought higher-yielding alternatives to traditional fixed-income investments. Private debt offers attractive returns compared to government and corporate bonds, making it a compelling option for yield-seeking investors.
• Private Equity Growth: The expansion of private equity has fueled the demand for private debt. Leveraged buyouts and other private equity transactions often rely on private debt to finance acquisitions and growth. This symbiotic relationship between private equity and private debt markets drives demand and innovation in debt instruments.
• Economic Recovery and Growth: Economic growth and recovery phases tend to spur demand for capital, especially from SMEs looking to expand operations, invest in new projects, or refinance existing debt. Private debt provides the necessary capital for these growth initiatives.
• Increased Awareness and Acceptance: There is growing awareness and acceptance of private debt as a viable asset class among investors and borrowers. The bespoke nature and flexibility of private debt solutions appeal to a wide range of companies and sectors, enhancing its attractiveness.

Advantages for Borrowers

- Flexibility: Private debt can be structured to meet the specific needs of the borrower, offering more flexibility than traditional bank loans. This can include customized repayment schedules, covenants, and other terms.

- Speed: Private debt transactions can often be completed more quickly than public market transactions or traditional bank loans, which is crucial for companies needing timely access to capital. This speed can be vital for seizing market opportunities or addressing urgent financial needs.

- Access to Capital: Companies that may not qualify for traditional bank loans due to size, sector, or risk profile can still access capital through private debt. This inclusivity helps support the growth of diverse businesses.

Advantages for Investors

- Diversification: Private debt provides diversification benefits, reducing overall portfolio risk. By including private debt in a portfolio, investors can reduce exposure to traditional market volatility.

- Higher Returns: Investors can achieve higher returns compared to traditional fixed-income securities. The higher yield compensates for the additional risk and illiquidity associated with private debt.

- Predictable Cash Flows: Many private debt instruments offer regular interest payments, providing predictable cash flows for investors. This predictability can enhance portfolio stability and income planning.

3. Top 10 Global Parties per Type of Player in Private Debt

Direct Lending

1. Ares Management Corporation: Known for its strong origination platform and extensive network in middle-market direct lending, Ares provides flexible financing solutions to a wide range of businesses.

2. Golub Capital : A leader in middle-market lending with a focus on private equity-backed companies, Golub offers comprehensive financing solutions that cater to the specific needs of its clients.

3. Oaktree Capital Management, L.P. : Offers a range of credit strategies, including direct lending, with a focus on risk management and downside protection, ensuring stability for investors.

4. HPS Investment Partners, LLC : Provides customized financing solutions across various sectors, leveraging its strong presence in direct lending to support business growth.

5. Antares Capital LP : Specializes in financing middle-market companies, particularly those involved in private equity transactions, with a focus on providing tailored solutions.

6. Alcentra : Focuses on providing debt capital to middle-market companies, utilizing its expertise in credit and structured finance to deliver optimal financing.

7. Sixth Street : Offers flexible capital solutions, including direct lending, with an emphasis on long-term partnerships and sustainable growth.

8. 凯雷投资集团 : Through its global credit platform, Carlyle provides direct lending solutions to middle-market companies, leveraging its extensive industry knowledge.

9. Kohlberg Kravis Roberts ( KKR ): KKR’s credit platform offers a range of lending solutions, including direct lending, to support the growth and development of businesses.

10. 高盛 Private Credit: Part of Goldman Sachs Asset Management, this platform provides direct lending solutions to middle-market companies, utilizing the firm’s vast resources and expertise.

Mezzanine Financing

1. 凯雷投资集团 : Offers mezzanine financing as part of its broader credit platform, supporting leveraged buyouts and growth capital with tailored debt solutions.

2. 高盛 Mezzanine Partners: Provides subordinated debt and equity co-investments, supporting leveraged buyouts, growth financing, and recapitalizations with flexible capital.

3. Audax Group : Specializes in mezzanine debt for middle-market companies, offering flexible capital solutions that support growth and expansion.

4. Ardian Private Debt: Focuses on providing mezzanine financing to European companies, supporting their growth and expansion plans with customized debt solutions.

5. TPG Sixth Street Partners: Offers mezzanine financing as part of its broader credit platform, targeting companies across various sectors to support their strategic goals.

6. Apollo Global Management, Inc. : Provides mezzanine financing to support leveraged buyouts, growth capital, and other corporate needs, leveraging its extensive credit expertise.

7. Barings : Offers mezzanine debt solutions to middle-market companies, with a focus on providing flexible and tailored financing that meets specific business needs.

8. New Mountain Capital : Provides mezzanine financing as part of its comprehensive credit platform, supporting the growth and expansion of companies across various sectors.

9. GSO Capital Partners ( Blackstone ): Offers mezzanine financing solutions to companies, leveraging its extensive credit expertise and resources to deliver optimal debt solutions.

10. H.I.G. Capital : Specializes in providing mezzanine debt to middle-market companies, supporting leveraged buyouts and growth capital with customized financing.

Distressed Debt

1. Oaktree Capital Management, L.P. : A leading player in distressed debt investing, Oaktree is known for its expertise in identifying and restructuring troubled companies, aiming to turn around their fortunes.

2. Avenue Capital Group : Focuses on distressed debt and special situations, providing capital to companies undergoing financial difficulties and helping them restructure.

3. Apollo Global Management, Inc. : Offers distressed debt solutions as part of its broader credit platform, targeting companies in need of restructuring and turnaround.

4. Brookfield : Invests in distressed debt opportunities, leveraging its expertise in real assets and restructuring to drive value creation.

5. Centerbridge Partners, L.P. : Specializes in distressed debt and special situations, providing capital to companies in financial distress and supporting their turnaround efforts.

6. Cerberus Capital Management : Known for its distressed debt investing, focusing on opportunities across various sectors and geographies, and leveraging its restructuring expertise.

7. Davidson Kempner Capital Management : Invests in distressed debt and special situations, providing capital to companies undergoing financial restructuring to facilitate their recovery.

8. KKR Credit: Part of KKR’s credit platform, focusing on distressed debt and special situations to support turnaround and restructuring efforts with strategic capital.

9. Fortress Investment Group : Specializes in distressed debt investing, leveraging its expertise in credit and asset management to identify and invest in troubled companies.

10. Silver Point Capital, L.P. : Focuses on distressed debt and special situations, providing capital and expertise to companies in financial distress to aid in their recovery.

Special Situations

1. Elliott Investment Management L.P. : Known for its activism and special situations investing, providing capital to companies undergoing significant changes and leveraging its strategic expertise.

2. Bain Capital Credit : Focuses on special situations and distressed debt, providing capital to companies in need of restructuring or turnaround to support their strategic initiatives.

3. BlackRock Private Credit: Part of BlackRock’s broader credit platform, focusing on special situations and distressed debt opportunities to drive value creation.

4. Anchorage Capital Group, L.L.C. : Specializes in special situations and distressed debt, providing capital to companies undergoing significant changes and helping them navigate these transitions.

5. Cerberus Capital Management : Known for its expertise in special situations investing, targeting companies in need of turnaround and restructuring with strategic capital solutions.

6. Centerbridge Partners, L.P. : Focuses on special situations and distressed debt, providing capital and expertise to companies undergoing significant changes and facilitating their recovery.

7. Davidson Kempner Capital Management : Invests in special situations and distressed debt, providing capital to companies in need of restructuring to support their strategic goals.

8. GSO Capital Partners ( Blackstone ): Offers special situations investing as part of its broader credit platform, targeting companies in need of turnaround with strategic capital solutions.

9. Monarch Alternative Capital LP : Specializes in special situations and distressed debt, providing capital to companies undergoing significant changes to facilitate their recovery and growth.

10. York Capital Management : Focuses on special situations and distressed debt, providing capital and expertise to companies in financial distress to aid in their recovery and growth.

4. Innovative Players and Business Models in the Private Debt Market

Blue Owl Capital

Innovative Model: Permanent Capital Vehicles

Description: Blue Owl Capital focuses on providing direct lending through permanent capital vehicles, which means they are not bound by traditional fund lifecycle constraints. This allows them to offer long-term, patient capital to borrowers, which is particularly beneficial for companies seeking stable, long-term financing solutions. Their structure allows for more flexibility and alignment with the needs of their portfolio companies.

Antares Capital

Innovative Model: Data-Driven Lending

Description: Antares Capital leverages advanced data analytics and proprietary technology platforms to enhance their lending decisions and risk management processes. By utilizing big data and machine learning algorithms, they can better assess credit risk, streamline due diligence, and offer more competitive and tailored financing solutions to their clients.

CapitalSpring

Innovative Model: Franchise Finance Specialist

Description: CapitalSpring focuses exclusively on providing debt and equity capital to the franchise restaurant industry. Their deep industry expertise and specialized knowledge allow them to offer unique financing solutions tailored to the specific needs of franchise operators, including growth capital, real estate financing, and equipment loans. This niche focus sets them apart from more generalized lenders.

CAPX Partners

Innovative Model: Equipment Financing and Leasing

Description: CapX Partners specializes in providing equipment financing and leasing solutions to middle-market companies. Their innovative approach includes offering custom-tailored lease structures and asset-based financing solutions that help companies manage capital expenditures and optimize their balance sheets. This model is particularly beneficial for companies with significant equipment needs or those undergoing expansion.

Cadence Bank

Innovative Model: SBA Lending Focus

Description: Cadence Bank is notable for its focus on Small Business Administration (SBA) lending. By specializing in SBA loans, Cadence Bank offers small and medium-sized enterprises (SMEs) access to government-backed financing with favorable terms, such as lower down payments and longer repayment periods. This focus on SBA lending helps bridge the financing gap for smaller businesses that might struggle to secure traditional bank loans.

Fuse Capital

Innovative model: Bringing Private Debt to SMEs.

Fuse Capital, a prominent debt advisory services provider, employs a direct and efficient strategy in obtaining private debt, enabling companies to utilize debt for expansion, mergers and acquisitions, shareholder buyouts, and refinancing. With a wealth of experience spanning over 11 years and a history of assisting over 500 clients, Fuse Capital has successfully secured more than a Billion Euros in debt financing. By utilizing one of the most comprehensive fund networks in the sector, Fuse Capital excels in connecting clients with suitable funding channels.

Tennenbaum Capital Partners, LLC (now part of BlackRock)

Innovative Model: Hybrid Private Debt and Equity Strategies

Description: Tennenbaum Capital Partners, now integrated into BlackRock, employs a hybrid approach that combines private debt and equity investments. This model allows them to provide flexible capital solutions that can be tailored to the specific needs and growth stages of companies. Their ability to offer both debt and equity financing enables them to support businesses through various phases of development and restructuring.

Golub Capital

Innovative Model: Sponsor Finance

Description: Golub Capital focuses on providing financing solutions to private equity-backed middle-market companies. Their innovative business model revolves around close partnerships with private equity sponsors, offering tailored lending solutions that align with the strategic objectives of both the sponsors and their portfolio companies. This approach helps streamline deal processes and enhance value creation.

Hercules Capital

Innovative Model: Venture Debt

Description: Hercules Capital specializes in providing venture debt to high-growth, innovative companies in the technology, life sciences, and sustainable and renewable technology industries. Their focus on venture debt allows them to support companies that may not yet have positive cash flow but possess significant growth potential. Hercules Capital offers a range of flexible financing solutions that complement equity financing and help companies scale.

TPG Twin Brook Capital Partners

Innovative Model: Lower Middle Market Focus

Description: Twin Brook Capital Partners focuses on providing debt financing solutions to lower middle-market companies, a segment often underserved by larger financial institutions. Their deep understanding of the unique needs and challenges of lower middle-market businesses enables them to offer customized and flexible financing solutions, including senior loans, unitranche loans, and junior capital.

Square 1 Bank (a division of Pacific Western Bank )

Innovative Model: Banking for Startups

Description: Square 1 Bank specializes in providing banking and debt financing solutions to startups and early-stage companies. Their innovative approach includes offering lines of credit, working capital loans, and growth capital tailored to the unique needs of startups. Square 1 Bank's deep understanding of the startup ecosystem allows them to provide valuable financial support to high-growth companies in their critical early stages.

Conclusion on innovative models

The private debt market is diverse and dynamic, with many specialists focusing on specific sectors and innovative players leveraging unique business models to differentiate themselves. These innovative players demonstrate the diverse range of business models and specialized approaches that can differentiate firms in this competitive landscape. By focusing on niche markets, leveraging technology, and offering tailored financing solutions, these firms are able to meet the unique needs of their clients and drive value in their respective sectors. As the market continues to evolve, private debt is likely to remain a key tool for financing and investment, offering tailored solutions that meet the needs of both borrowers and investors.

5. Sector Specialists in Private Debt

Private debt specialists often focus on specific sectors, leveraging their expertise and industry knowledge to provide tailored financing solutions. Below are ten notable sector specialists in private debt and a brief explanation of the sectors they operate in:

1. Deerfield Management

Sector: Healthcare

Description: Deerfield Management specializes in providing private debt to companies within the healthcare sector. Their investments span pharmaceuticals, biotechnology, medical devices, diagnostics, and healthcare services. Deerfield leverages its deep industry knowledge to offer customized financing solutions that support growth, innovation, and operational improvement in healthcare companies.

2. Vista Equity Partners

Sector: Technology

Description: Vista Equity Partners focuses on private debt and equity investments in software, data, and technology-enabled companies. They provide growth capital, leveraged buyout financing, and other debt solutions to companies in the technology sector. Vista's expertise in software and technology helps them identify promising companies and structure deals that drive innovation and growth. For the high-tech mid-market also see Fuse Capital in the innovative business model section of this article.

3. Riverstone Holdings

Sector: Energy

Description: Riverstone Holdings is a private investment firm specializing in private debt and equity investments in the energy sector. Their focus areas include oil and gas exploration and production, midstream infrastructure, power generation, and renewable energy. Riverstone leverages its extensive industry experience to provide financing solutions that support energy projects and companies across the value chain.

4. @Blackstone Real Estate Debt Strategies ( BREDS )

Sector: Real Estate

Description: Blackstone Real Estate Debt Strategies (BREDS) focuses on providing private debt financing for real estate investments. They offer various debt products, including senior loans, mezzanine loans, and preferred equity, to support commercial real estate acquisitions, developments, and refinancing. Blackstone's deep understanding of real estate markets enables them to structure tailored financing solutions for diverse real estate assets.

5. Macquarie Asset Management (MIRA)

Sector: Infrastructure

Description: Macquarie Infrastructure and Real Assets (MIRA) specializes in private debt and equity investments in infrastructure projects. Their focus areas include transportation, utilities, renewable energy, and social infrastructure. MIRA provides financing solutions that support the development, operation, and maintenance of critical infrastructure assets globally.

6. Providence Equity Partners

Sector: Media and Entertainment

Description: Providence Equity Partners focuses on private debt and equity investments in media, entertainment, communications, and information services. They provide financing solutions to support mergers and acquisitions, growth capital, and other strategic initiatives in the media and entertainment industry. Providence's deep industry expertise helps them identify high-potential opportunities and structure effective financing solutions.

7. L Catterton

Sector: Consumer Goods

Description: L Catterton specializes in private debt and equity investments in the consumer goods sector. Their focus areas include consumer products, retail, and services. L Catterton provides financing solutions to support growth, expansion, and operational improvements in consumer goods companies, leveraging their industry knowledge and network to drive value creation.

8. Ares Management Corporation

Sector: Financial Services

Description: Ares Management Corporation focuses on private debt investments in the financial services sector. They provide a range of financing solutions, including senior loans, subordinated debt, and mezzanine financing, to banks, insurance companies, asset managers, and specialty finance companies. Ares leverages its deep financial services expertise to structure deals that support growth and stability in this sector.

9. Bain Capital Credit

Sector: Industrial

Description: Bain Capital Credit specializes in private debt investments in the industrial sector. Their focus areas include manufacturing, aerospace, automotive, and industrial services. Bain Capital Credit provides customized financing solutions to support mergers and acquisitions, growth capital, and restructuring efforts in industrial companies, leveraging their sector expertise to drive operational improvements and value creation.

10. KKR Credit

Sector: Telecommunications

Description: KKR Credit focuses on private debt investments in the telecommunications sector. They provide financing solutions, including senior secured loans, subordinated debt, and unitranche loans, to telecom companies and related infrastructure providers. KKR leverages its extensive industry knowledge and network to structure deals that support growth, expansion, and technological advancements in the telecommunications sector.

Conclusion on sector specialists

The private debt market is diverse, with many specialists focusing on specific sectors to leverage their expertise and industry knowledge. These sector specialists provide tailored financing solutions that meet the unique needs of companies within their respective industries. By understanding the intricacies of each sector, these private debt providers can offer more effective and customized financial support, driving growth and value creation for their clients.

6. Dutch local parties active in the Netherlands in Private Debt

1. Main Capital Partners

Based in The Hague, Main Capital Partners focuses on providing private equity and debt to enterprise software companies across the Benelux region, including the Netherlands. They offer growth capital and debt solutions to help companies expand and innovate within the software sector.

2. Maas-Invest

Operating from Elst, MaasInvest specializes in buyouts, management buyouts, and growth capital. They target companies in sectors such as media, SaaS, big data technology, and health tech. Their investment strategy includes providing debt financing to support the growth and operational needs of Dutch businesses.

3. NPM Capital

Based in Amsterdam, NPM Capital provides a combination of traditional buyouts and growth capital. They focus on medium to large-sized companies in the Benelux region, particularly within the information technology and software sectors. Their approach includes offering debt financing as part of their comprehensive investment solutions.

4. Waterland Private Equity

Waterland Private Equity, headquartered in Bussum, Netherlands, focuses on buyouts and growth financing, including private debt. They support companies across various sectors, providing the necessary capital for expansion and operational improvements.

5. Dutch Mezzanine Fund (DMF)

The Dutch Mezzanine Fund specializes in providing mezzanine financing to Dutch SMEs. Mezzanine financing is a hybrid of debt and equity, which can be an attractive option for companies looking to expand without diluting their ownership.

6. NEOS Direct Lending

NEOS Direct Lending focuses on providing senior secured loans to medium-sized businesses in the Netherlands. They aim to offer flexible and customized debt solutions that support the growth and development of their portfolio companies.

7. Alpha Corporate Finance

Description: Alpha Corporate Finance provides a range of private debt solutions, including mezzanine financing and unitranche loans. They focus on mid-market companies in the Netherlands, offering tailored financing structures to meet specific business needs.

8. Dutch Venture Initiative ( European Investment Fund (EIF) and Oost NL )

The Dutch Venture Initiative provides venture debt to high-growth companies in the Netherlands. Their focus is on supporting innovative companies in their expansion phases, providing the necessary capital to scale operations.

9. NIBC Bank Direct Lending

While NIBC is technically a bank, its direct lending arm operates similarly to non-bank private debt providers, offering customized lending solutions to mid-sized companies in the Netherlands. They provide a range of financing options, including senior and subordinated loans.

10. Egeria

Egeria is a private equity firm based in Amsterdam that also provides private debt solutions. They focus on medium-sized Dutch companies, offering flexible financing options to support growth, acquisitions, and other strategic initiatives.

11. Triple Point Capital Management, LLC

This investment management firm, although originally based in the UK, has a strong presence in the Netherlands. They offer private debt financing to support energy, infrastructure, and social impact projects, providing flexible capital solutions tailored to the Dutch market.

These non-banking institutions play a crucial role in the Dutch private debt market by providing flexible and tailored financing solutions to a variety of businesses, helping to fuel growth and innovation across different sectors.

These local players, along with international firms, contribute to the dynamic and growing private debt market in the Netherlands by providing tailored financing solutions to a wide range of businesses and sectors.

The presence of both banks and dedicated private debt funds ensures that Dutch companies have access to diverse and flexible financing options. Some typical banks and wealth management firms in the Netherlands providing tailored private debt solutions are:

1. 荷兰銀行 Private Banking

ABN AMRO, a major Dutch bank, offers private debt solutions through its private banking arm. They provide customized lending solutions to high-net-worth individuals and family offices, supporting a variety of investment needs, including real estate and business expansion.

2. ING Wholesale Banking

ING, another leading Dutch bank, actively participates in the private debt market by offering direct lending and syndicated loans. They cater to large corporates and middle-market companies in the Netherlands, providing flexible debt structures to support various financing needs.

3. Rabobank

Rabobank, known for its cooperative banking model, is also a significant player in the private debt market. They focus on providing financing solutions to SMEs and agribusinesses, leveraging their deep industry expertise to offer tailored debt products.

4. Van Lanschot Kempen Investment Banking

Van Lanschot Kempen, a Dutch wealth management firm, offers private debt investments through their private banking services. They provide bespoke debt solutions to their clients, focusing on wealth preservation and growth.

5. Delta Lloyd Asset Management

Part of NN Investment Partners, Delta Lloyd Asset Management offers private debt funds that invest in senior loans, mezzanine financing, and other debt instruments. They cater to institutional investors looking for stable returns and portfolio diversification through private debt.

Conclusions

Private debt has emerged as a crucial component of the financial landscape, offering tailored financing solutions to a diverse range of companies and sectors. Its growth is driven by regulatory changes, investor demand for yield, the expansion of private equity, economic recovery, and increased awareness and acceptance. For borrowers, private debt provides flexibility, speed, and access to capital, while for investors, it offers diversification, higher returns, and predictable cash flows. As the market continues to evolve, private debt is likely to remain a key tool for financing and investment, offering tailored solutions that meet the needs of both borrowers and investors.

This comprehensive understanding of private debt underscores its importance in modern finance and its potential for future growth and innovation.

Other Sources (not mentioned earlier):

• PitchBook Data , Inc
• Future of Alternatives 2028,?Preqin, 2023, cited in Private Debt – An Expected But Uncertain “Golden Moment”?, EY, January 2024
• Private Debt – An Expected But Uncertain “Golden Moment”?, 安永 , January 2024
• LSEG Risk Intelligence LPC, as of Q3 2023, cited in Global Private Equity Report 2024, Bain & Company Inc. Middle market includes issuers with revenues less than USD500 million and total loan package less than USD500 million; direct lending includes non-syndicated facilities, including club lending
• TPG Angelo Gordon 's Capital Markets Perspectives, TPG, 31 October 2023
• Private markets 2024 outlook: Finding value amidst volatility,? HarbourVest Partners , January 2024
• S&P Global
• Capital IQ Ltd.
• 彭博资讯
• Loyens & Loeff

Harry Bruintjes is founder and partner of Crossings Advisory | Strategy | Mergers and Acquisitions | Recovery | Valuation and partner at Crossings People | Talent Advisory | Strategy, M&A and Investment Management | Interim Management and can be reached on [email protected] or on +31 (0)85 200 6244.