17 Jun 2025
Investec’s Mid-Market client survey finds economic conditions challenging
- Over 60% of respondents see the current overall economic conditions as challenging to their ambitions
- 61% want to make strategic investments
- 56% believe AI may enhance their business
Investec Bank plc, a leading international financial services provider, today announces the findings of a research conducted by its Direct Lending team of 50 mid-market UK, Benelux and DACH-based companies.
The survey reveals that 63% of respondents describe the current economic conditions as challenging (rated average to poor). Specific areas of concern highlight costs related to wage inflation and National Insurance (NI), as well as the need to remain competitive in their core geographies.
Despite these challenges, 61% of respondents say they are seeking to identify opportunities for strategic investments. The most common reasons include expanding products or services and entering new geographies. Additionally, 56% of respondents state that Artificial Intelligence (AI) will have the potential to enhance their business’s performance.
Key highlights from the survey findings include:
- Wage Inflation and UK National Insurance Contributions: The survey reveals that 17 respondents identify wage inflation and changes to employer National Insurance contributions as the most significant risks facing their businesses.
- Challenging Competitive Environment: Ten leaders rank this as their most significant challenge. Additionally, 18 respondents believe that tariffs are “somewhat negative” for their business, while only one considers it their “highest” concern.
- Outlook: In evaluating current economic conditions, 12 respondents rate the environment as “poor,” while 16 perceive it as “average.” Looking ahead, 19 leaders expect conditions to improve to “good” or “very good” within the next year.
- Pricing: While most respondents (27) feel that the availability of financing has not changed significantly over the last year, 22 indicate that pricing has actually improved.
Michael Miller, Head of Private Credit Management (PCM) in Investec’s Direct Lending team, commented: “The insights from our survey highlight both the challenges and opportunities that financial leaders are navigating. What’s clear from our survey is that the market remains challenging for lower mid-market clients, which may explain why so many companies are looking to AI to drive efficiencies and automate tasks.
“It’s also interesting to note that while the availability of financing has largely remained static, respondents have found that it has become cheaper, which should support business growth. We look forward to partnering with our clients to help them navigate their future and secure the funding they need to succeed.”
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