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Diversifying direct lending portfolios through sponsor-less lending

Federated Hermes

The landscape for direct lending is crowded. Increased competition and limited buy-out activity have put lenders under more pressure to deploy. In navigating the challenges of a maturing asset class, investors may consider sponsor-less lending in the lower mid-market as a means of diversifying a portfolio and enhancing the potential for return.

For professional investors only. Capital at risk.

Federated Hermes

Tuesday 10th March 2026

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