UK government scheme spurs creation of direct lending hedge funds

Lending boost

A neon sign advertising loans

Small and medium enterprises (SMEs) are vital to the health of any economy. Yet many have been left scrambling for capital as banks have reduced lending to smaller companies.

Policy-makers are keen to stimulate lending to this sector of the economy and are encouraging the growth of alternative funding sources.

Direct or private lending is one potential solution.

Fund managers have also spotted this gap in the market and some are stepping up existing direct lending businesses while others are enteri