Lender category

Private-credit & direct-lending funds

Private-credit (direct-lending) funds lend from institutional capital — pension and insurance money — rather than deposits. That funding base lets them hold more leverage, underwrite on cashflow rather than assets, and structure around an event a bank will not. The flexibility is priced accordingly, above bank terms on rate and covenants, and it pays for itself when the cheaper end of the market declines or cannot do the structure.

When a borrower should look here

Look to direct lending when the raise turns on the equity story rather than the balance sheet — funding growth, a buy-and-build, an acquisition, a refinancing or a recapitalisation that needs more leverage or more flexibility than a clearing or challenger bank will extend. It rewards preparation: a clean information memorandum, a built model and a complete data room let a fund reach a credit view in days. The trade is price and covenants above bank terms in exchange for that reach and certainty.

How they differ from one another

They differ mainly by the segment they actually serve. Beechbrook, Kartesia and Apera are built for the lower-mid-market and will write the sub-£15m cheque on its own merits. Arcmont, Park Square, Permira Credit, CVC Credit, Tikehau and Bridgepoint Credit are larger pan-European platforms whose core unitranche tickets typically start higher, reaching down only selectively. Eurazeo and Foresight are broader alternative-asset houses with a private-debt arm — Foresight notably active in UK regional SME lending. Appetite also splits on sector, sponsored versus sponsorless, and leverage tolerance.

The private-credit & direct-lending funds

A curated reference map drawn from public sources — informational, not a ranking or a recommendation.