Private debt funds are filling the gap left by bank retrenchment, says Sandrine Richard, Head of private debt at Generali Investments Partners
How would you describe the current mid market private debt opportunity across Europe?
The markets that we focus on in France, Germany, Italy and Spain are changing deeply. Starting with covid, then the geopolitical situation, the weaknesses in the global banking system, higher inflation, energy prices and interest rates, we have seen a paradigm shift that has created opportunities and points of attention for debt funds and investors. Investing in private debt implies floating rate notes, so increases in base rates are benefiting investors.
Because it is not listed, private debt aims to offer protection against volatility. Private credit also has a key role in supporting the economy and SMEs, while providing protection via lender-friendly documentation, notably financial covenants, which is even more key in the current environment.
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Supporting documents
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