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ARTICLE · 24 JANUARY 2017

Debt Funds To The Rescue

KPMG Luxembourg
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Corporate financing in Europe is currently undergoing a significant transformation...

LuxembourgFinance and Banking
Eugen Keller
Eugen Keller
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Corporate financing in Europe is currently undergoing a significant transformation. Historically, it has been largely dominated by banks, but with banks being in the process of deleveraging and currently burdened by additional capital requirements, debt funds have stepped in and increasingly provided funding to small- to medium-sized enterprises, either through direct lending or through loan acquisition/participation. Debt funds have grown significantly in number and size in recent years and are constantly winning market shares vis-à-vis banks. In Luxembourg, for instance, the number of assets managed by debt funds has increased by a factor of six over the past five years.

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