Insights

As we close Q3 and look ahead to year-end, the European mid-market continues to demonstrate resilience despite broader macroeconomic challenges. M&A volumes in Europe remain steady, with over half of our introductions this quarter tied to sales processes, while refinancings, including Continuation Vehicles, continue to represent a prominent theme. In our quarterly European Mid-Market Monitor, […]

In a market environment characterised by ongoing disruptive events, investors are seeking reliable and predictable sources of return.  Mid-market direct lending, when guided by a clear strategy and executed with discipline, can provide precisely that— predictable, reliable, risk-adjusted returns.   In our latest insights, we explore how Pemberton’s investment focus, through successive fund generations and structural […]

Momentum in M&A and the diverging macro-landscape between the US and Europe reinforces Europe’s investment appeal where we believe better risk-return is available for LPs.

The first quarter of 2025 saw a continued improvement in the quality of new deal introductions, with M&A processes gaining notable momentum and outpacing refinancing and recapitalisation activity. This positive start has established a solid foundation for the second quarter. In our European Mid-Market Monitor, we explore key trends and developments in direct lending and spotlight the technology sector, one of our most active areas in 2024 and an ongoing source of high-quality opportunities. We also provide regional insights from the Benelux market, which remains resilient and active in M&A despite broader global headwinds.

The growth and return opportunities for direct lending in Europe’s mid-market are highly attractive.With banks continuing to reduce lending volumes and increased market volatility reducing thepredictability of public financing markets, private credit has emerged as a robust solution for borrowersand LPs alike.However, direct lending portfolios have been tested by slower economic growth, the impact of […]

LPs are benefiting from higher asset level returns. This is a function of market dislocation over the last 24 months, a more pronounced absence of banks from the market and the rate hike cycle implemented by the European Central Bank, the Bank of England and the US Federal Reserve. This is benefiting our current fund […]

We believe that most of the Direct Lending capital in the market over the last 12 months has been directed towards the Upper MidMarket (deals with an Enterprise Value above €500 million), where investment opportunities are readily accessible through investment banks and sponsors.