ODDO BHF Asset Management completes further closings of its senior loan strategy focusing on German Mittelstand companies. In approximately one year, the private debt strategy has raised nearly EUR250 million. This demonstrates strong interest from institutional investors such as French, Italian or German insurance companies, pension funds and family offices as well as high-net worth individuals across Europe.

The strategy is financing successful German “Mittelstand” companies in the acceleration of their transformation and growth. Germany represents the strongest EU small and mid-cap market with c. 450k SMEs1 diversely spread across sectors and regions operating within a dynamic economy. Structurally, the direct lending market is growing with 59% of transactions executed by debt funds in 2020.

The strategy has benefited from the market environment where the deal flow has strongly recovered from the Covid-19 dip of May 2020, with 147 deals analysed in the last twelve months, over threequarters of which have been sponsor-led financings. The investment team will by the end of 1st semester have completed 5 debt financings together representing EUR47 million and with three further transactions in the execution stage.

Dr. Markus Geiger, Head of Private Debt, says, “Given the challenges raised by the Covid crisis, we are really glad about the outcome we have achieved to-date. The experience and track record of the private debt team and our ability to convert investment opportunities allow us to complete this additional closing, putting us in a very good position to reach our target of EUR300 million by year end.”

Nicolas Chaput, Chief Executive Officer at ODDO BHF AM, adds “The development of the Private Assets business is a key element of the Group’s strategic growth and diversification targets. We are pleased that major institutions and blue chip investors like the EIF and Allianz France have supported our project and investment team since the First Closing, besides the ODDO BHF Group.”