Middle market debt: the long view

18 jul 2016
por Stephan Caron, Steve Sterling

We believe that middle market lending is moving to the mainstream, and that it will play an increasingly important role for many institutional investors in the years ahead.

In the era of ultralow interest rates, many institutional investors have gravitated to middle market lending, attracted by the potential of higher-yielding, floating-rate assets with decreased volatility.

Meanwhile, banks have reduced lending to midsize companies, in an effort to shrink their balance sheets and comply with new post-crisis regulations.

We believe this trend is still in its early stages, and that over time it will lead to significant changes in how middle market companies around the world are financed, and in the makeup of credit exposures in institutional portfolios.

In order to achieve their goals, middle market investors need a robust source of deal flow; the ability to structure, execute, monitor and service loans effectively; and a strong platform that can meet the needs of high-quality borrowers.

Middle market web summary
Steve Sterling
Managing Director, Head of BlackRock U.S. Private Capital
Steve Sterling, Managing Director, is Head of BlackRock US Private Capital and the Chairman and CEO of BlackRock Capital Investment Corporation ("BCIC"), a US ...
Stephan Caron
Head of European Middle Market Private Debt
Stephan Caron, Managing Director, is Head of European Middle Market Private Debt for the Global Credit team within BlackRock's Global Fixed Income group.