De-banking and the growing influence of Dutch private lending
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Article Type
Market Updates
Topic
Alternative Fixed Income
Published
May 27, 2026
Read time
5 mins
Authors
Bart Lugtenburg
George Konings
Frank Meijer
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Over the past decade, debt markets have undergone a fundamental shift. Traditional bank lending has become increasingly constrained, and many banks have reduced their appetite for certain types of lending, creating space for private debt providers to step in and finance the growth ambitions of Small Medium Enterprises (SMEs) and mid‑cap companies. This “de‑banking” trend is reshaping the market as non‑bank lenders increasingly act as an intermediary between borrowers and long‑term institutional capital. It has also created new opportunities for investors seeking attractive risk‑adjusted returns and exposure to the Dutch economy. This article covers the origins and benefits of private debt, highlighting Aegon Asset Management’s (AM's) approach and expertise in this domain.

 

Origins of private debt

Private debt refers to non-tradable, often illiquid, corporate debt. In the case of the Aegon Dutch Private Debt strategy, loans are provided to small or mid-market companies. Today, an increasing number of these corporate loans are funded using long-term capital provided by pension funds, insurers and other institutional investors.

 

Historically, these loans were held on banks' balance sheets and funded by consumer deposits. However, following the Global Financial Crisis, regulatory changes required banks to reduce exposure to certain types of loans and de-risk their balance sheet. This, in turn, created opportunities for institutional investors looking to diversify their portfolios beyond traditional fixed income.

 

Over time, private debt funds began working alongside banks as co-lenders, complementary providers or originate-to-distribute partners who can step in where banks face capacity limits or leverage restrictions. This paved the way for specialized lending strategies, such as Dutch private debt, which focuses on Dutch SMEs and mid-cap companies.

 

How it works and Aegon AM’s approach

At Aegon AM, we capitalize on our well-established Dutch banking network to gain access to attractive deal opportunities. With the largest private debt team in the Dutch market, we combine local origination reach with a long-standing lending track record: our team has been originating SME and mid‑cap loans for many years for Aegon and a.s.r. and previously across various banks. We also work with private equity firms and debt advisors to source high-quality investment leads. In addition, Aegon AM has been selected by the European Investment Fund for an SME loan program supported by EIF guarantees, further strengthening our access and structuring capabilities. We target profitable and growing companies with stable business models and strong cash flows. Investments are often related to acquisitions or growth, and the deal structure can be tailored to meet the specific needs of the borrower whilst protecting the investors from downside risks.

 

In addition to thorough financial and market analysis, our team assesses each opportunity through Aegon AM’s proprietary sustainability and impact framework. We use this to identify and prioritize the most impactful companies and use‑of‑proceeds, and to structure measurable objectives at the outset of the loan. The framework maps proceeds across four key themes: innovation and sustainable growth, climate and energy transition, circular economy and resource efficiency, and social development and wellbeing. Where relevant, we translate these themes into clear KPIs and ongoing engagement with borrowers over the life of the loan.

 


What makes Dutch private debt particularly attractive to institutional investors?

 

Structural advantage

With the market being less transparent and more relationship-driven compared to public markets, investing in private debt requires significant expertise, local networks and relationships. This, in turn, offers investors higher yields and better terms.

 

Attractive returns

Within our Dutch Private Debt strategy focused on Dutch SMEs and mid‑caps, we target spreads of around Euribor + 600 bps1. These returns reflect the bespoke nature of private‑market lending.

 

Additional downside protection

Investments come with greater downside protection in the form of conservative documentation with lender-friendly terms and covenants, security on senior loans and the potential for EIF or similar guarantees on subordinated loans.

 

Diversification

Private debt offers institutional investors access to a different part of the fixed income universe (and real economy, by extension), thereby opening a complementary market of Dutch small and midcap companies instead of large cap multinationals via the liquid bond market. Moreover, this strategy can minimize exposure to correlation risk which can arise when holding both public company debt and equities simultaneously.

 

Invest locally in the Dutch economy

The strategy targets an allocation of at least 75 percent to Dutch companies, including SMEs and mid‑caps. This gives institutional investors the ability to finance businesses that contribute to employment, innovation and the energy transition within the healthy and steadily growing economy of the Netherlands.

 

Alignment with ESG and impact objectives

Private market lending can incorporate tailored ESG or impact features from the outset. Dutch private debt gives investors the opportunity to finance companies that contribute to the impact themes, often supported by concrete and tailor-made sustainability or impact performance targets that incentivize companies to further improve on those aspects.

 

Conclusion

Aegon AM can provide access to a unique part of the fixed income market that is otherwise difficult to access for institutional investors. This segment of small and midcap companies in the Netherlands offers an attractive investment opportunity that can complement traditional fixed income financing to large cap multinationals via the liquid bond market. In addition, the Dutch Private Debt strategy can help bridge funding gaps to companies thanks to its flexibility and local expertise. Supported by a long investment track record, Aegon AM can deliver attractive risk-adjusted returns for investors while supporting Dutch businesses that are growing, innovating and becoming more sustainable.

 

Sources

1The stated target spread is a gross figure and is expressed relative to Euribor for illustrative reference purposes only. Portfolio investments include a mix of fixed‑ and floating‑rate instruments that may not individually reference Euribor. The target spread represents an aggregate portfolio objective and is not a guaranteed outcome. 

 

Important information

Authors

Bart Lugtenburg
Senior Investment Manager Midcap Loans
Bart Lugtenburg is an investment manager in the midcap lending team.
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George Konings
Senior Investment Manager, European Direct Lending
George Konings is an investment manager in the European direct lending team.
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Frank Meijer
Head of Alternative Fixed Income & ABS
Frank Meijer is the head of alternative fixed income & structured finance. In this role, he is responsible for Aegon AM’s private debt and structured finance activities in Continental Europe and the UK.
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