Unlocking opportunities in sponsorless SME loans

Patrick Marshall dispels three myths around investing in sponsorless SMEs

clock • 3 min read
Unlocking opportunities in sponsorless SME loans

Most direct lenders focus on sponsor-backed small- and mid-cap transactions to gain access to the lower end of the corporate market. However, they are missing a crucial and attractive piece of the jigsaw: the loan market for European, sponsorless, senior-secured small- and medium-sized enterprises (SMEs).

One of the key drivers for investing in this market is its size: SMEs account for a large share of the loan transactions arranged each year in Europe. Tapping into this space can provide a wide ran...

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