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Debt funds set to benefit from strong risk-adjusted returns as terms move in their favour, says Michael Curtis, head of private credit strategies at Fidelity.
Many lenders are still in the comfort zone, as performance holds up and sponsors make concessions on deal terms, but few expect that to continue through the tests ahead.
Challenging market conditions mean Europe’s private debt firms are cautious, while expressing confidence in the current vintage.
Discussion of the use of royalties in the private debt financing of healthcare indicates that, though there is much to be said in its favour, such a strategy has limitations. Christopher Faille reports
Borrowers with maturing loans in the sector increasingly have fewer options amid the challenging interest rate environment
The market in France remains very competitive between banks and credit funds.
Benelux has built a strong fourth position in European deal volumes, supported by strong fundamentals.
While dealflow remains strong, lenders are cautious as we head towards the end of the year.
The retrenchment of banks is proving a boon for private debt markets, especially in Poland.
Spain’s private debt market has continued to grow strongly this year, outpacing many other European markets.