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European Direct Lending

We offer bespoke financing solutions which address the strategic and operational needs of corporate borrowers in the European lower mid-market.
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. "
Lower mid-market direct lending: Private debt opportunities in Europe

We believe that local presence and expertise are paramount to identifying private debt deals that we’ll want to include in our portfolio.

Video: Lower mid-market direct lending: Private debt opportunities in Europe

Source: Pictet Asset Management

Our investment beliefs
1. Credit fundamentals2. 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 nicheWe have a strong conviction that the lower-mid market offers the best risk/return opportunities
3. Liquidity and resilience4. 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. Partnership6. 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

*By clicking on the contact us button, you agree that your message may be sent to a central department of Pictet Asset Management which may be in an entity of the Pictet Group located in a country other than your own, and that the content of your message and your contact details may be shared between different teams in order to provide the best response to your enquiry.

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

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.

  • 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

  • Andreas KLEIN

    Andreas Klein

    Head of Private Debt

  • Axel Cordonnier

    Head of Private Debt, France

  • Jan Reichenbach

    Head of Private Debt, DACH

  • Kirsten Winterhager

    Head of Private Debt, UK

The intricacies of structuring deals in France
Video: The intricacies of structuring deals in France

Source: Pictet Asset Management

The evolving German direct lending market
Video: The evolving German direct lending market

Source: Pictet Asset Management

Direct lending in the UK
Video: Direct lending in the UK

Source: Pictet Asset Management

Lower mid-market direct lending in Europe
Video: Lower mid-market direct lending in Europe

Source: Pictet Asset Management

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