Are the tides starting to turn for small and medium-sized businesses? The mid-market appears ready for a soft landing after a promising start to 2024. M&A looks finally set to rebound and lenders report a bullish sentiment. Private Debt Investor’s Mid-Market Lending Report pinpoints the sectors driving the sector in 2024.
After defying expectations in the last two years, private debt’s most dynamic market could be expected to cool off in 2023 as the macroeconomic realities start to bite. But there’s overwhelming consensus that the current difficulties in both the banking industry and the deal market will play to the strengths of the mid-market. We consider the key trends driving the sector in 2023 and look at how fund managers are achieving double-digit returns despite the tough environment.
Private debt markets have defied the doubters over the past 12 months and roared ahead in terms of both dealflow and fundraising. The mid-market has proved no exception. After an exceptionally strong end to 2021 we look at whether the optimism can continue into 2022 and ask if it’s better to take a sector-specific or generalist approach in this crucial market segment.
Our annual Mid-Market Lending report is a valuable benchmark for how private debt is faring as we move into the second quarter. The good news is that with the European mid-market continuing to grow – one report even has it outpacing the US within a decade – everything points to another strong year for lending.
A global economic downturn has been anticipated for quite some time now, but no one could have foreseen the single factor that would suddenly tip markets into meltdown mode – a virus.
Covid-19 is wreaking its havoc across the world in quite spectacular style. So, amid the growing turmoil, how will the mid-market lending space stand up?
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