Pemberton launches a strategic credit opportunities strategy
Strategy reflects strong demand from European mid-market corporates for flexible finance
Pemberton, the diversified asset manager backed by one of Europe’s largest insurers, Legal & General Group PLC, today announces its strategic credit opportunities strategy.
The new strategy intends to enable global institutional investors to benefit from quality investment opportunities that arise as European mid-market companies increasingly seek non-dilutive capital to finance their growth.
Pemberton has seen strong demand from mid-market companies that are looking for flexible financing to support their growth. The strategic credit opportunities strategy intends to (i) provide junior capital to proven companies seeking funding, including for continued expansion or acquisitions, and (ii) provide senior and unitranche funding for companies that are looking to return to growth, including after suffering temporary operating issues.
Flexible finance includes the provision of senior or junior debt to meet specific company needs and has traditionally been offered by banks to their corporate clients. However, regulatory changes are increasingly impacting this business. Basel III has made the provision of subordinated debt prohibitively expensive for banks as it typically counts as a capital deduction. The reduction in banks’ ability to lend is leading European mid-market companies to seek new financing solutions from non-bank lenders.
Pemberton intends to use its existing pan-European platform to originate investments in established, performing European mid-market companies, with a turnover between €75 million and €1 billion.
At Pemberton, we are seeing growing demand from European companies who need growth or recovery capital. We have already originated 110 strategic credit opportunities from high-quality companies which have substantial debt requirements, but who do not fit banks’ lending criteria or are not of a sufficient size to access public markets. This strategy aims to provide investors with exposure to these companies and to allow borrowers to continue their growth.
– Symon Drake-Brockman, Managing Partner at Pemberton
I am excited to be joining Pemberton as it solidifies its position as one of the leading private debt funds in Europe. The opportunity to join a truly pan-European firm with significant growth upside, where I can apply my cross-border legal experience, was highly attractive.
– Ben Gulliver, Head of Portfolio Management & Co-Head of Direct Lending
