Business
Japan’s MUFG hires Raphael Charon to grow direct lending business in EMEA
Global Banking & Finance Review®
Company
LONDON (Reuters) – Mitsubishi UFJ Financial Group (MUFG) has appointed former Fidelity International banker Raphael Charon as head of middle market direct lending for MUFG in Europe, the Middle East and Africa, the bank said on Tuesday, as it looks to expand in one of banking’s hottest areas, private credit.
Charon will be tasked with helping the Japanese bank’s private equity clients with their direct lending to mid-market companies, as MUFG grows its wider business with such clients.
The bank’s direct lending team will focus on deals in Britain as well as Belgium, the Netherlands and Luxembourg, a spokesperson for the bank said, targeting deals worth around 20-40 million euros ($22-43 million).
Direct lending is a key part of private credit, an industry which has boomed in recent years as financial companies outside the banking sector face fewer regulatory hurdles than traditional lenders, although ratings agencies have warned of the risks from the industry’s opacity.
Banks are battling back in this market, with Goldman Sachs in May saying it raised $20 billion via its asset management arm for such deals.
MUFG like its domestic rivals is seeking to expand its international business, as higher interest rates in those markets inflate profits when earnings from abroad are brought home.
($1 = 0.9200 euros)
(Reporting by Lawrence White; Editing by Mark Potter)
Direct lending refers to the practice where lenders provide loans directly to borrowers without intermediaries, often targeting mid-market companies for financing.
Private equity involves investing in private companies or buying out public companies to delist them from stock exchanges, aiming for long-term capital growth.
Rising interest rates occur when central banks increase the cost of borrowing money, which can impact loans, mortgages, and overall economic activity.
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