Middle-market companies need capital to expand, but debt financing has become harder to obtain since the traditional providers – banks – are retrenching in response to tighter regulations and a change in the overall lending landscape. This has left a gap in the mid-sized credit market that we at Patrimonium are uniquely positioned to fill.
Our specific expertise in mid-market companies – coupled with our geographic focus on Switzerland, Germany, and neighboring European countries – is what sets us apart.
Through our in-depth knowledge of this niche segment, we can better understand the challenges these businesses face and structure the most efficient financing solution.
To date, we have provided over €1bn in financing to some 200 companies. Our team has over 10 years of experience across the full credit cycle. And while our method is industry-agnostic, ESG criteria play an important role in our investment decisions.
This responsible approach is also reflected in the strict separation between our debt and equity financing activities, with no migration between the two – whether in terms of information, staff, or processes.
We carefully screen the companies in our target market and provide tailored financing solutions to the ones we deem to be on solid footing, and which have annual revenue of between €10m and €500m.
We seek opportunities that are outside the mainstream, drawing on our long-standing network and close working relationships in specific markets. This enables us to move swiftly – often before other lenders – and take advantage of opportunities before they come to market. We tend not to participate in auctions.
Our approach involves protecting against the loss of our investment. We step in to provide financing where banks no longer do, with structured loans designed to provide regular interest income and returns commensurate with the level of risk taken.
We believe that the first step to lending success is effective due diligence. Our experts conduct site visits to potential investee companies and closely evaluate their operations and strategies. Once we agree to provide financing, we arrange bespoke transactions and monitor the company’s repayment capacity over the entire investment lifecycle.