Executive summary
As banks reduce exposure to mid-market lending, private credit funds and long-term investors are stepping in.
Well-structured loans with strong collateral and covenants offer attractive risk-adjusted returns.
Discipline in underwriting remains the key differentiator in this growing market.
- 01As banks reduce exposure to mid-market lending, private credit funds and long-term investors are stepping in.
- 02Well-structured loans with strong collateral and covenants offer attractive risk-adjusted returns.
- 03Discipline in underwriting remains the key differentiator in this growing market.
Why banks are retreating
Basel III and its final implementation under CRR3 have raised capital requirements for mid-market corporate lending, encouraging banks to reduce balance-sheet exposure.
Non-bank lenders fill this gap with flexible, tailored financing solutions.
Underwriting discipline
We focus on senior secured positions, robust maintenance covenants and conservative leverage. Every opportunity undergoes financial, legal and ESG due diligence.
Portfolio construction
Diversification across sectors, geographies and vintages limits concentration risk, while active monitoring enables early intervention.
Market data
Source: Holding JMB Research Office. Figures are indicative and for illustration only.
Legal & regulatory framework
- AIFM Directive 2011/61/EU
- CRR3 / Basel III final reform
- Code monétaire et financier — lending monopoly exceptions
- SFDR disclosure regulation (EU) 2019/2088
Outlook
Private credit remains an attractive allocation for patient capital, provided underwriting standards are maintained.