The next frontier in selective mid-market lending
Distinguished by its lender-friendly structural protections, higher yields and lower competition from public markets, mid-market private credit deals are set to continue playing a significant role in the financing of small and medium-sized enterprises. While the strategy continues to attract strong capital flows, market stress is now most visible in the mid-market, where private credit’s heavy exposure to SaaS is driving more selective deployment.
- As mid-market SaaS borrowers face higher leverage and rising default risks, are structural protections becoming more essential?
- Are the lines between mid-market and large-cap lenders blurring as larger lenders move down-market?
- With European banks aggressively launching dual-track origination models and JV partnerships with private credit funds, how has the competitive landscape for mid-market deals shifted? Is this narrowing the yield premium?
- How are mid-market lenders evolving their documentation and inter-creditor agreements to protect themselves against ‘creditor-on-creditor- violence seen in larger capital structures?
Speakers
Deal flow trends and market activity in Q1
Sourcing, access, and competition dynamics
Germany's economic outlook and private investment opportunity
Central and Eastern Europe as a private debt market
Diversification as a core portfolio management principle
Software and SaaS exposure in mid-market portfolios
Outlook for the rest of the year and key risks
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Senior Originator, Global Private Finance
Joseph Plank is a Managing Director in Barings’ Global Private Finance Group. Based in London, he is responsible for originating, executing, and monitoring European private finance investments. Joseph has worked in the industry since 2010 and most recently as a senior originator on Ardian’s private credit team. There, he originated and executed debt facilities for mid-market European sponsor-backed borrowers and was responsible for the end-to-end investment process, including origination, execution, monitoring, and work-out. Prior to that, he worked at GE Capital and SMBC following its acquisition of GE Capital, holding a range of roles including senior originator with a focus on UK, Benelux, and the Nordics. He holds a Bachelor of Arts (Hons) in English from the University of Leeds.
Felix is a Partner at Bright Capital and heads the Frankfurt based Private Credit Investment Team. He joined Bright Capital in 2018 and is responsible for originating, underwriting, and executing sponsor-backed and predominantly sponsor-less investment opportunities with a strong buy-and-build angle in the DACH lower-mid-market. Felix has >10 years of industry experience and, prior to joining Bright Capital, worked in Leveraged Finance at HSBC, where he focused on structuring and executing mid and large cap sponsor-backed LBO transactions. Felix started his career in Investment Banking, holds a Master of Science in Finance and studied in Germany, the US and France.
Magdalena has over 16 years of international experience in executing investments, portfolio oversight, corporate finance, and transaction advisory. Throughout her career, she has completed transactions on public and private markets valued at over EUR 13 billion. In her current role, she leads sourcing, execution and monitoring of private debt investments and serves as a member of the Investment Committee at CVI. CVI is the leading private debt manager in Central Europe with over EUR 1.1 billion in AUM. Prior to CVI, she gained investment banking experience at Lehman Brothers and Nomura in London, and later she led the Corporate Finance division at Kulczyk Investments. Magdalena holds Master’s degree in Finance from ESCP Europe, with studies undertaken in London, Madrid, and Paris. She also graduated from Harvard Business School (PLD, EMBA equivalent) and the Poznań University of Economics.
Markus joined ODDO BHF in 2018 and is a Senior Managing Director – Head of Private Debt. He chairs the Advisor Credit Committee and is responsible for the management and development of the Private Debt expertise of the group.
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