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.
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