Germany’s mid-market is in transition, and private debt is playing a pivotal role. Digitalisation, energy, sovereignty and succession: these shifts are reshaping priorities and creating new financing needs.
In that context, private debt offers an alternative to traditional bank lending that is particularly well-suited to the needs of mid-market companies. French players such as LBP AM are well-positioned to bring financing solutions and agility.
New market dynamics are creating new financing needs. Investment in digitalisation, electrification, automation and the reinforcement of industrial supply chains are becoming key challenges for German companies. The energy context has also changed, creating needs for new, renewable infrastructure faster than expected. The German Mittelstand is facing major transitions and deep structural changes. With 99% of its 3.4 million companies being family-owned, large parts are preparing for ownership transfers. A study from the Institut für Mittelstandsforschung points out that around 186,000 businesses in Germany will be up for transfer between 2026 and 2030. At the same time, the German banking landscape is changing: consolidation has brought the number of credit institutions from 3,500 in 1997 to under 1,400 today, while access to credit is tightening, with c. 38% of SMEs reporting restrictive lending conditions as of Q4 2025 — the highest level ever recorded. Adding to the pressure, Covid-era KfW loans are now maturing, triggering a refinancing wave through 2027.
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