Select another investor profile To access more content, select your investor profile

European Direct Lending

European Direct Lending

Our European Direct Lending strategy focuses on the lower mid-market, which we believe offers our clients a differentiated value-add proposition. As such it can be suitable for new investors taking their first steps into the asset class, or for sophisticated investors seeking to diversify their existing allocation.

Key facts

Strategy typeEuropean Direct Lending 
Investment market segment focusLower mid-market 
Target deal size€15-40 million 

How we invest

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).

Our investment philosophy

Our private debt investment approach is underpinned by the following beliefs: credit fundamentals are the main determinant of companies’ long-term success; the lower mid-market offers favourable risk/return opportunities; asset-light businesses with recurring revenues maintain resilience and liquidity; local expertise is vital to generate original and high-value investment opportunities; a proactive partnership approach creates value through strategic, operational, and ESG guidance; and risk analysis is crucial to credit due diligence, mitigating residual risks.

[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.

Featured content

  • Our European Direct Lending approach

    We offer bespoke financing solutions which address the strategic and operational needs of corporate borrowers in the European lower mid-market.

    Find out more

Our head and regional heads

  • Andreas KLEIN

    Andreas Klein

    Head of Private Debt

  • Axel Cordonnier

    Head of Private Debt, France

  • Jan Reichenbach

    Head of Private Debt D/A/CH & NL

  • Kirsten Winterhager

    Head of Private Debt, UK

Contact us

Our Asia ex Japan business development and client relationship management team serves an array of institutional and intermediaries clients within the region from offices in Hong Kong, Shanghai, Singapore and Taiwan. Please contact us for ways we can help with your investment needs.

For general enquiries, please call +852 3191 1805 or email at PAMHK@pictet.com

Read more