John Bakie
Direct lending in Europe has been driven by bank consolidation and is set to grow further following the covid-19 pandemic.
The Paris-based firm believes German direct lending offers considerable opportunities.
Opportunities are presenting themselves to a private debt industry that appears to have shown resilience through the health crisis, but challenges remain.
The fund will track and report its impact performance to investors.
The deal will see institutional investor capital deployed alongside HSBC’s mid-market loans.
The vehicle is the first NBK Capital Partners fund to offer credit compliant with sharia rules.
The firm believes investors will seek more exposure to the strategy in the near future due to present market conditions.
Private debt has played a major role in funding small UK businesses and is set to be vital to SME recovery post-covid.
European private debt activity rebounded during the fourth quarter of 2020 and bank retrenchment helped drive increased market share.
The fund was launched following the outbreak of the covid-19 pandemic and will look for niche credit investments.