Mitsubishi UFJ Financial Group (MUFG) announced on Tuesday that it has hired Raphael Charon, a former banker at Fidelity International, as head of middle market direct lending for MUFG in Europe, the Middle East, and Africa. The move comes as the bank seeks to grow in private credit, one of the hottest sectors in banking.
As MUFG expands its broader business with private equity clients, Charon will be responsible for assisting the Japanese bank’s clients with direct lending to mid-market businesses.
According to a bank spokeswoman, the bank’s direct lending team will concentrate on transactions in Britain as well as Belgium, the Netherlands, and Luxembourg, with an eye toward transactions valued between 20 and 40 million euros ($22 and 43 million).
Although ratings agencies have cautioned about the risks posed by the industry’s opacity, direct lending is a crucial component of private credit, which has grown rapidly in recent years as financial firms outside the banking sector are subject to fewer regulatory restrictions than traditional lenders.
Banks are fighting back in this market; in May, Goldman Sachs reported raising $20 billion for these deals through its asset management division.
Since higher interest rates in those regions inflate profits when revenues from overseas are brought home, MUFG, like its domestic competitors, is looking to grow its international business.
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