LONDON: Mitsubishi UFJ Financial Group (MUFG) has appointed former Fidelity International banker Raphael Charon as head of mid-market direct lending for MUFG in Europe, the Middle East and Africa, the bank announced on Tuesday. as it plans to expand into one of the major banking sectors. hottest areas, private credit.

Charon will be responsible for assisting the Japanese bank’s private equity clients with their direct lending to mid-sized companies, as MUFG expands its business with these clients.

The bank’s direct lending team will focus on operations in Britain as well as Belgium, the Netherlands and Luxembourg, a bank spokesperson said, targeting deals worth ‘around 20 to 40 million euros ($22 to 43 million).

Direct lending is a key part of private credit, a booming sector in recent years, with financial firms outside the banking sector facing fewer regulatory hurdles than traditional lenders, although rating agencies have warned against the risks linked to the opacity of the sector.

Banks are fighting back in this market, with Goldman Sachs saying in May it had raised $20 billion through its asset management arm for such deals.

MUFG, like its domestic competitors, is seeking to expand its international business because higher interest rates in those markets inflate profits when earnings from abroad are repatriated.

($1 = 0.9200 euros)