Private Debt Funds in Europe
Demand for Private Debt has soared in the last 10 years. As European banks deleverage due to tighter regulatory requirements under Basel III standards, the capital available from traditional credit investors for small and mid-market companies is diminishing. With most direct lending capital being raised by mid-market firms, Kartesia believes that the lower end of the market has been left underserved, resulting in a structural opportunity that the Firm seeks to exploit.
The flexible financing solutions and track record offered by Kartesia, has allowed it to become a partner of reference for management teams, sponsors and lower mid-market corporates across Europe.
Kartesia is an independent firm founded in 2013 with the objective of targeting corporate credit opportunities in the lower mid-market in Europe via a dual-track primary-secondary investment model. The firm has become a pan-European leading specialist provider of capital solutions for small and mid-sized companies. It provides long-term liquidity and credit solutions following a fundamental and disciplined approached, based on knowledge of the European small and mid-cap corporate market and an extensive professional network.
Collectively, the Kartesia team is characterised by extensive leveraged finance industry experience, as well as complementary backgrounds in banking, corporate finance, accounting, consulting and industry, combined with numerous relationships with financial sponsors, deal arrangers, lenders, advisers and asset managers across Europe.
Kartesia has the capacity to support borrowers throughout cycles and in fast paced deal making contexts, evidenced by over €2.6 bn invested across 137 companies over the last 10 years. With local teams based out of 7 offices across Europe, able to leverage extensive local expertise & networks and enabled by direct senior involvement and rapid investment process, it provides a competitive edge to management teams, sponsors and corporates in time sensitive competitive processes.
Kartesia’s Approach to Private Debt
Kartesia has the disposition to go the extra mile and uncover value in complex business models or situations. It provides access to flexible financing solutions tailored to the specific needs through instruments across the capital structure, from senior secured debt to minority equity, inclining equity syndication. It provides structural flexibility via capitalized interests, covenants headroom and dividend restrictions giving the capacity to allow stakeholders to gain or retain equity control with the support of Kartesia. Additionally, Kartesia has the expertise to manage underperforming investments and restructurings.
As disciplined credit investors, Kartesia places a strong emphasis on downside protection. Its disciplined fundamental credit analysis and local access to information equips the firm with the right skills to assess risk and judge potential returns for their fund portfolios. Kartesia typically focuses its investments on senior ranking debt instruments, seeking financial covenants, asset security, discounted entry pricing and an attractive contractual return on invested capital.
Kartesia in numbers