Drawing on almost two decades of experience, we underwrite private debt loans for European mid-market companies with the aim of capitalizing on the attractive and growing middle market financing opportunity in Europe. Our established and cycle-tested track record highlights the merits of our prudent investment approach and our ability to select some of the most attractive opportunities in the area of direct lending.
NAV of arranged middle-market debt transactions
What we do
While many factors − such as economic growth and M&A activity − influence private debt markets, we believe investing in the right opportunities is what ultimately drives returns for a successful direct lending program. Our targeted investment process therefore focuses on bottom-up selection and on securing access to high-quality investments with the potential to deliver attractive risk-adjusted returns. Our goal is to build diversified portfolios of investments that provide strong cash flow coupled with downside mitigation.
Our approach – why partner with us
Our Direct Lending team has a long track record of generating competitive returns with limited volatility, reflecting our key strengths including:
- Strong network and coverage – As an active investor in private debt since 2005, we have built a substantial network of sponsors and intermediaries and have established extensive local and regional market coverage.
- Established and cycle-tested track record – We have invested over EUR 5.3 billion in 121 arranged middle market debt transactions mainly to sponsor-backed companies over the last 18 years. We have strong experience and expertise in managing turnarounds and restructurings.
Team – an average of 13 years of industry experience
Our Direct Lending team comprises 22 investment specialists who are dedicated to sourcing, analyzing and negotiating private debt investments. They are supported by more than 20 professionals focusing on areas such as legal, risk management and assessment, portfolio monitoring, loan servicing and treasury, as well as fund reporting.
Matthew Gordon Clark
Source of attractive returns, diversification and downside protection
"I am part of a generation of investors that has grown up with low interest rates, excess liquidity and markets moving in only one direction. Clearly this is not the norm and markets can go both ways. In this context, and with generationally high interest rates at present, the direct lending business is extremely well positioned to continue to excel as a source of attractive returns, diversification and downside protection. I joined LGT Capital Partners’ Private Debt team in the latter half of 2019 because it felt like the right platform to capitalize on key market trends. We offer flexible capital solutions that address real world complexities whilst also being driven by a shared belief in supporting sustainable growth and developing long-term partnerships."
Ines Aller Berjon
There has never been a more exciting time
"I have been investing in and lending to middle market companies across Europe for more than 25 years. LGT Capital Partners is uniquely positioned to leverage the relationships that we have built up in the European private equity space over decades in order to provide debt facilities to the best-performing companies. As private debt managers raise ever larger funds, our core market of businesses with EBITDA of EUR 15-50 million remains underserved just as demand surges. There has never been a more exciting time to do what we do."
Matthew Gordon Clark