Calls by regulators for banks to hold more capital has led to a squeeze in lending to corporates and has particularly affected the middle market sector. Further macro-economic instability may further decrease appetite from traditional lenders to provide funding, creating an investment opportunity for non-bank lenders like Alcentra to fill the gap as banks are disintermediated.
The middle market is a large contributor to GDP and employment, where private-sector funded lending will complement the traditional bank financing market.
Alcentra can arrange a flexible financing package for middle market borrowers, provide the capital and develop a close relationship with the management of the borrower.
Compared with secured debt, lending directly to the middle market provides investors with access to attractive returns across the capital structure and more control over terms of the financing package.
Alcentra has investment funds focused on lending to businesses located in both Europe and the U.S. and is proud to be working with the British Business Bank, who as part of the Business Finance Partnership, is an investor in Alcentra's UK Direct Lending Fund.
Further information for Japanese residents seeking to invest in a direct lending fund registered in Japan can be found here.