European Direct Lending
Private debt
Building on a longstanding heritage in fixed-income and alternatives investing, Pictet Asset Management has set up a pan-European private debt platform under the leadership of Andreas Klein, Head of Private Debt.
Our European Direct Lending strategy aims to deliver strong1 long-term risk-adjusted returns by providing debt financing for privately-owned lower mid-market companies in Europe (EBITDA of €3-12 million). The strategy was launched in 2023 and deployment of committed capital has started.
"We look for deals involving niche, robust businesses across low-beta industries such as Healthcare, Education, Business Services and Software/Tech. "
We believe that local presence and expertise are paramount to identifying private debt deals that we’ll want to include in our portfolio.
Source: Pictet Asset Management
| 1. Credit fundamentals | 2. Lower-mid market alpha |
| We believe the biggest determinant of long-term success is the underlying credit fundamentals of any investee company and its market niche | We have a strong conviction that the lower-mid market offers the best risk/return opportunities |
| 3. Liquidity and resilience | 4. Local expertise |
We believe that asset-light businesses with visible, recurring revenues and a flexible operating base maintain liquidity and resilience through an economic cycle | We believe that local expertise is vital to generate original and high-value investment opportunities and to provide a deep understanding of local legislative frameworks |
| 5. Partnership | 6. Risk management by design |
We believe in a proactive partnership approach to help create value through strategic, operational and ESG guidance | Risk analysis is a crucial part of credit due diligence, with each investment structured and documented to mitigate the probability and impact of any residual risk |
Source: Pictet Asset Management
[1] Euribor base rate + c.8% gross yield. This objective is based on the achievement of market assumptions approved by the management company. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and is not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment/product. The expected future performance does not in any way constitute a promise of future returns. All forms of investment involve risk. The value of investments and the income derived from them is not guaranteed and it can fall as well as rise and you may not get back the original amount invested.
Deal examples provided for illustrative purposes only. They shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Current deals may be subject to change.
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Time Tac GmbH
Country: Austria
Area of activity: Cloud-based (SaaS) time tracking software solution
Deal type: Senior-secured term facilities to support the primary buy-out of the company
Investment date: February 2024 -
Mlase AG
Country: Germany
Area of activity: Excimer laser heads manufacturer for the MedTech industry
Deal type: Unitranche financing solution for the primary buyout of the company
Investment date: August 2023 -
Licel Environment
Country: France
Area of activity: Software solutions for property diagnosticians
Deal type: Unitranche financing for the sponsorless primary buy-out of the company
Investment date: July 2023 -
ProNet Services
Country: Switzerland
Area of activity: Cleaning and facility management services
Deal type: Senior term loan to support the secondary buy-out of the company
Investment date: October 2024
Source: Pictet Asset Management, October 2024.
Meet our head and regional heads of Private Debt
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Andreas Klein
Head of Private Debt
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Axel Cordonnier
Head of Private Debt, France
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Jan Reichenbach
Head of Private Debt, DACH
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Kirsten Winterhager
Head of Private Debt, UK
Source: Pictet Asset Management
Source: Pictet Asset Management
Source: Pictet Asset Management
Source: Pictet Asset Management
