A new era for mid-market funding?

Mid-market firms in Europe are struggling to meet their financial needs as traditional banks continue to undergo a deleveraging process. Alexandra Krief and Taron Wade, directors at Standard & Poor’s Ratings Services, explain how investors could fill the private funding gap

clock

Mid-market firms in Europe are struggling to meet their financial needs as traditional banks continue to undergo a deleveraging process. Alexandra Krief and Taron Wade, directors at Standard & Poor's Ratings Services, explain how investors could fill the private funding gap

The funding environment for mid-market companies is rapidly changing. Europe’s mid-size businesses – defined as companies with revenues between €100m and €1.5bn – will require between €2.4trn and €2.8trn in debt market funding over the next five years. Yet regulatory constraints are forcing banks to shrink their balance sheets and cut lending to this sector. There is also a drive by mid-market companies, in the aftermath of the credit crunch, to reduce their dependence on banks by diversifying their sources of funding. Last year, net loan issuance to corporates in the eurozone was neg...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: Navigating a new era for investing

Partner Insight: Navigating a new era for investing

Across the developed world, inflation is back and here to stay, says Wellington Management’s John Butler.

Sarka Halas
clock 13 March 2024 • 2 min read
Trustpilot