Investec Alternatives reports record year for Direct Lending in 2025

Investec Alternative Investment Management (IAIM) today announced a record year for its Direct Lending business in 2025, with over €2bn of new capital partnerships and commitments raised across its European direct lending platform and a record €1.1bn deployed across 54 investments.

The performance reflects continued client confidence in Investec’s lower mid-market strategy, the strength of its sourcing capabilities and proprietary deal flow, and the team’s disciplined focus on capital preservation and risk-adjusted returns.

Client commitments secured during the year included the final close of Investec Private Debt Fund II and the launch of Investec Senior Debt Fund I, spanning senior to stretched senior and unitranche, broadening the platform’s capital depth and enhancing its capabilities to structure financing solutions across the borrower lifecycle. Support from both existing investors and new partners reflects continued confidence in Investec’s lower mid-market strategy, long-term track record and disciplined approach to deployment.

Across the year, the Direct Lending team reviewed approximately 550 investment opportunities. Deployment remained disciplined and consistent, with 57 per cent of capital supporting existing borrowers alongside selective new investment origination. Investec also continued to deepen its relationships with lower mid-market sponsors across Europe, helping generate repeatable deal flow aligned with its underwriting philosophy.

Against a backdrop of increased focus across the private credit industry on credit quality, valuations and selectivity, Investec believes the lower mid-market continues to offer an attractive opportunity set. The firm’s disciplined underwriting approach, conservative leverage levels and relationship-led origination position it well to support high-quality borrowers and deliver for clients in a more selective market environment.

While competition across private credit continued to intensify in 2025, particularly in the upper mid-market, the lower mid-market remained resilient, less crowded and capable of delivering strong risk-adjusted returns. Investec believes this continues to create attractive opportunities for investors and borrowers alike, supported by relationship-led origination, higher barriers to entry and disciplined structuring.

The year also brought further recognition of the team’s market position, including leading lender rankings, underlining the strength of the platform in a competitive market.

Callum Bell, Head of IAIM and Direct Lending, said: “2025 was a strong year for our Direct Lending team. We delivered record deployment in a more competitive market, supported by long-standing client relationships, deep partnerships across the market and the quality and discipline of our people.

We continue to see attractive opportunities in the lower mid-market, where our sourcing capability, selective approach and flexible financing solutions position us well to support high-quality businesses and deliver for clients.”

Investec expects the private credit market to remain focused on selection through the rest of 2026, with the quality of origination, underwriting discipline and long-term partnerships continuing to differentiate performance. IAIM believes its scale, flexibility and lower mid-market focus position it strongly to support clients and borrowers through that environment.