Leverest Credit Talk – Bridgepoint

It’s Not Banks vs Funds, It’s Who Holds the Risk

Simon Christ has worked on both sides of the leveraged lending market – ten years at banks and the last four at Bridgepoint Credit. That shapes how he reads today’s market: selective, but turning, and clearly better than its reputation. We spoke with Simon about Bridgepoint’s latest €5.1 billion direct lending fund, why the question isn’t banks versus funds, and why Germany could become one of Europe’s most attractive credit markets.

Simon, your career has taken you from the banking side, including IKB, Bank of Ireland and ABN AMRO, to Bridgepoint Credit. How do you see the German LBO market today?

Bifurcated, moving and clearly better than its reputation. Over the last two years, the bottleneck hasn’t been financing but the lack of private equity exits and corporate successions, which has subdued primary deals. Sponsors have held assets longer than planned, and the gap has been filled with refinancings, continuation vehicles and, increasingly, structured equity.

That started to change in 2026, and we’re moving into Q4 on a good note. Primary processes are coming back, and M&A activity into 2027 looks positive. Capital continues to compete hard for the few A assets, which inflates leverage and valuations. But lenders have become more constructive on B assets, which increases optionality.

Bridgepoint Credit just closed its fourth direct lending fund at around €5.1 billion, well above the previous vintage. What’s driving that, and what does it change for you?

Bridgepoint has a 40-year track record in the mid-market, through every cycle, and the Mittelstand has always been our core. Our sector teams and industry networks give us real depth, and our credit funds have performed well across vintages. LPs reward that: we closed above target, broadened our investor base and are already over 40% invested.

Our strategy hasn’t changed. We focus on the mid-market, from €5m EBITDA into the double-digit millions. The bigger fund lets us do more and larger deals and be a long-term partner to sponsors and companies through buy-and-build and growth. Our local-for-local approach stays. We originate locally, so sponsors have a direct line to someone they know well, who understands local deal dynamics. Our track record helps us pick the right deals early and with conviction.

You’ve sat on both sides, banks and funds. Is there a real difference in how each looks at the same asset?

Yes, though not where people expect. Both look at the same things: downside protection, credit quality, the sponsor behind the deal and how we get repaid.

The difference is what sits behind the decision. A bank weighs capital costs, ancillary business and syndication, and a deal often passes through several hands. We have a long-term investor mindset, and the deal team stays with the company as its partner from first call to repayment.

We come with more knowledge. Our knowledge bank – sector teams, industry experts, a broad portfolio across three credit strategies and deals we’ve often seen before – helps us build conviction quickly. Weekly IC access lets us move fast.

Banks and funds seem to be moving toward each other, funds into senior club structures, banks into partnerships with asset managers. More competition for you, or parallel tracks?

It’s positive. It means higher capital availability. Europe, and especially Germany, faces substantial capital needs, from physical infrastructure and digital connectivity to defence and energy. Banks have always been a critical node in the credit ecosystem. They once dominated leveraged finance, continue to be active alongside funds and have deep relationships with corporate Germany.

The question isn’t banks versus funds, it’s who’s best positioned to hold a specific risk. Banks are well positioned for cash management, hedging, and working capital-heavy businesses. We provide long-term, flexible capital for growth, from senior to asset-backed and hybrid solutions, increasingly where bank capital is less present. And we keep adapting to the market and finding new opportunities, from aircraft engines to music royalties. We are keen to work with all market participants to find the best financing solution.

Hot take: what’s one view you have on the German leveraged finance market that some or most of your peers would disagree with?

I’ll take the positive side. Germany is at a genuinely interesting crossroads, and I see it becoming one of the most attractive and active credit markets in Europe.

Several forces are shaping the German market right now. The valuation gap is slowly closing, which should accelerate private equity exits, and healthier vintages are coming of age. Private credit is moving into new frontiers, from infrastructure and real estate to asset-backed finance. And there is a deep pool of Mittelstand companies that need succession and growth capital, many of them still underbanked, just as bank consolidation accelerates.

Funds are well placed for this, and Bridgepoint in particular. Flexibility is in our DNA. We have fine-tuned our investment approach through multiple cycles, and this year we further broadened our focus into industrials and asset-backed financing. I’m excited about what’s ahead.

This interview is part of Leverest Credit Talk – featuring senior voices from across the private credit and leveraged finance landscape. Learn more about Leverest → leverest.net