One Size Doesn’t
Fit Growth
Fit Growth
The power of bespoke financing for mid-sized companies
David Ullenius, CIO
May 2025
May 2025
I am often asked to share learnings and perspectives from my experience as a Chief Investment Officer. Of all the advice I could – and do– give, there is one simple yet significant lesson
I return to again and again, and that certainly underpins our daily philosophy here at P Capital Partners.
It’s this: As no two businesses are ever the same, neither should their financing be.
When I reflect on over two decades of partnerships with over 180 privately held businesses across Europe, and consider how we assess opportunity, structure risk, engage with the entrepreneurs and owners we back, the impact of that mindset is plain to see.
Each of the companies —be they family-owned manufacturers, founder-led software platforms, regional transport operators, specialist lenders and more— have all sought a financing partner who comes with far more than predictable off-the-shelf capital.
By embracing, rather than rejecting, uniqueness we have met each of these companies where they are. We listen, we understand, we build bespoke financing to align with each company’s strategy, ownership structure and long-term goals.
This conviction that one size does not, in fact, fit all, has propelled our own growth story. And we firmly believe that this approach is more necessary than ever in today’s European market.
I return to again and again, and that certainly underpins our daily philosophy here at P Capital Partners.
It’s this: As no two businesses are ever the same, neither should their financing be.
When I reflect on over two decades of partnerships with over 180 privately held businesses across Europe, and consider how we assess opportunity, structure risk, engage with the entrepreneurs and owners we back, the impact of that mindset is plain to see.
Each of the companies —be they family-owned manufacturers, founder-led software platforms, regional transport operators, specialist lenders and more— have all sought a financing partner who comes with far more than predictable off-the-shelf capital.
By embracing, rather than rejecting, uniqueness we have met each of these companies where they are. We listen, we understand, we build bespoke financing to align with each company’s strategy, ownership structure and long-term goals.
This conviction that one size does not, in fact, fit all, has propelled our own growth story. And we firmly believe that this approach is more necessary than ever in today’s European market.
Why standard lending doesn’t suit exceptional companies
”36% of the euro area’s mid-sized firms face difficulty securing adequate external finance”
We’ve long been aware of the mismatch between traditional credit markets and the needs of mid-sized, often founder or family led businesses. While the former are designed for uniformity, the latter is anything but. Whether scaling across borders, investing in infrastructure, pursuing acquisitions or transitioning leadership, mid-sized companies mostly have idiosyncratic needs, specific timelines and unique ownership goals.
This disconnect helps explain why, despite being deeply rooted in their sectors, with stable cash flows or strong assets, many businesses frequently find themselves underbanked. According to the ECB’s most recent SME Access to Finance report, 36% of the euro area’s mid-sized firms face difficulty securing adequate external finance, a figure that rises in periods of macroeconomic tightening or sector-specific disruption.
These companies are not underbanked because they are risky. They simply do not fit the mold because they are not sufficiently average.
This disconnect helps explain why, despite being deeply rooted in their sectors, with stable cash flows or strong assets, many businesses frequently find themselves underbanked. According to the ECB’s most recent SME Access to Finance report, 36% of the euro area’s mid-sized firms face difficulty securing adequate external finance, a figure that rises in periods of macroeconomic tightening or sector-specific disruption.
These companies are not underbanked because they are risky. They simply do not fit the mold because they are not sufficiently average.
Bespoke from the ground up
It is clear – to us, at least – that financing solutions need to reflect the real shape of a business, not just the headline metrics. This is why, for over twenty years, P Capital Partners has worked across the debt capital structure to create bespoke, bilateral financing solutions. By stepping outside of sponsor-backed models, we have the freedom to structure for durability, scalability and long-term alignment.
This brings me to a further, related learning: the capital we provide is typically deployed in transitional or strategic moments that are unique to the businesses we support. At these critical milestones, speed, creativity and conviction matter.
As the following examples of some of our key verticals illustrate, we make it our business to deliver on all three.
As the following examples of some of our key verticals illustrate, we make it our business to deliver on all three.
Succeeding where standard credit falls short
Our strongest fit lies in certain verticals where capital needs are significant and yet standard credit solutions fall short. This has led to us dedicating a large part of our focus on eight verticals that suit our capital solutions well, where businesses are mature enough for structured capital and where the characteristics of the industry are unique enough to require customized solutions.
”The capital we provide is typically deployed in transitional or strategic moments that are unique to the businesses we support”
Scenic Cruises
Investing Beyond Travel & Leisure Cycles
Shifting consumer trends, geopolitical risks and potential for exogenous shocks in Travel & Leisure can create complexities beyond the capabilities of traditional lenders. This can leave even the most asset-rich and strategically well-positioned businesses
being overlooked.
Our credit structures, however, can flex with cash flow volatility while anchoring to long-term asset value. This allows us to see past short-term unpredictability to finance a business’ long-term potential.
One example of this is our investment in Scenic Cruises. Following COVID, this founder owned luxury cruise operator needed to refinance and fund additional growth capex. We structured a €70 million senior secured financing around a specific vessel-backed collateral pool, with cash flow support from the tour operator ascertaining full debt service as a going concern and a moderate risk versus the underlying asset values.
being overlooked.
Our credit structures, however, can flex with cash flow volatility while anchoring to long-term asset value. This allows us to see past short-term unpredictability to finance a business’ long-term potential.
One example of this is our investment in Scenic Cruises. Following COVID, this founder owned luxury cruise operator needed to refinance and fund additional growth capex. We structured a €70 million senior secured financing around a specific vessel-backed collateral pool, with cash flow support from the tour operator ascertaining full debt service as a going concern and a moderate risk versus the underlying asset values.
Monaghan Mushrooms
Financing purpose-driven Sustainable Food & Beverages growth
Few sectors are experiencing a greater transformation than Sustainable Food & Beverages. Consumer demand, sustainability considerations and supply chain pressures are all driving capital needs—and yet with many businesses being privately held, they are rarely a good fit for private equity or public debt. Increasing regulatory scrutiny, the operational volatility of seasonal production cycles and the need to scale sustainable practices profitably add further barriers to securing traditional funding.
For us, however, such complexities present a space where we can combine financial structure with sustainability-driven impact.Take, for example, our investment in Monaghan Mushrooms, a leading player in sustainable agriculture. PCP has been a strategic funding partner to the Monaghan since 2018. PCP’s 2021 financing is part of PCP’s ongoing commitment to support Monaghan Mushrooms’ long-term growth aspirations.
For us, however, such complexities present a space where we can combine financial structure with sustainability-driven impact.Take, for example, our investment in Monaghan Mushrooms, a leading player in sustainable agriculture. PCP has been a strategic funding partner to the Monaghan since 2018. PCP’s 2021 financing is part of PCP’s ongoing commitment to support Monaghan Mushrooms’ long-term growth aspirations.
Alektum
Backing specialist
Financial Services lenders
Financial Services lenders
A combination of heightened scrutiny around compliance and risk management, regulatory capital requirements, evolving fintech competition and limited access to traditional debt markets poses genuine capital constraints for smaller, specialized financial services companies such as niche lenders or fintech platforms. Transactions in this space rely on more than capital; they demand the deepest understanding of operational nuance, regulatory interplay and the delicate balance between growth and governance.
Our structures reflect precisely that, as illustrated in our partnership with the European receivables management firm Alektum. We provided second-lien financing with a structure that included call protection, covenant support and tailored repayment terms—helping the company scale in a capital-efficient way.
Our structures reflect precisely that, as illustrated in our partnership with the European receivables management firm Alektum. We provided second-lien financing with a structure that included call protection, covenant support and tailored repayment terms—helping the company scale in a capital-efficient way.
Cheplapharm
Meeting strategic Healthcare expansion with stability
Despite being underpinned by non-cyclical demand, regulatory support and recurring revenue, healthcare companies are still facing funding gaps, especially when pursuing acquisitions or innovation.
In many cases, the complexities of regulatory hurdles, clinical development timelines and reimbursement risks constraining traditional capital availability. In others, consolidation trends and cross-border M&A require highly customized financing with a strategic foresight that conventional funding simply cannot deliver.
In both scenarios, our ability to support M&A and capex with tailored credit solutions can, and does, make a real difference.
A strong example of this is our partnership with Cheplapharm. We provided €56 million in subordinated capital to finance strategic acquisitions of legacy pharmaceuticals from large pharma companies. The business nearly doubled its revenues within two years, and our loan was repaid following a successful refinancing.
In many cases, the complexities of regulatory hurdles, clinical development timelines and reimbursement risks constraining traditional capital availability. In others, consolidation trends and cross-border M&A require highly customized financing with a strategic foresight that conventional funding simply cannot deliver.
In both scenarios, our ability to support M&A and capex with tailored credit solutions can, and does, make a real difference.
A strong example of this is our partnership with Cheplapharm. We provided €56 million in subordinated capital to finance strategic acquisitions of legacy pharmaceuticals from large pharma companies. The business nearly doubled its revenues within two years, and our loan was repaid following a successful refinancing.
Luneos Green Energy
Financing the future of Renewable Energy
With high upfront costs before any revenue is generated, and revenues subject to power price volatility driven not only by supply and demand dynamics but also weather conditions, access to traditional capital is often challenging for renewable energy companies. For businesses with limited scale and balance sheets, that challenge is only exacerbated.
When Luneos Green Energy, a newly established renewables power platform needed capital to accelerate the construction of its initial project pipeline, we looked beyond the challenges and saw a highly specialized management team with a strong track record in the Polish renewable energy sector. Incorporating robust downside protection against power price volatility, we provided €68 million in tailored credit facilities to support the company’s growth. This investment not only supports Luneos’ expansion but contributes to the decarbonisation of Europe’s most carbon-intensive power grid.
When Luneos Green Energy, a newly established renewables power platform needed capital to accelerate the construction of its initial project pipeline, we looked beyond the challenges and saw a highly specialized management team with a strong track record in the Polish renewable energy sector. Incorporating robust downside protection against power price volatility, we provided €68 million in tailored credit facilities to support the company’s growth. This investment not only supports Luneos’ expansion but contributes to the decarbonisation of Europe’s most carbon-intensive power grid.
The intensifying need for bespoke
We are facing a pivotal period for European companies and for European competitiveness and prosperity. Rising interest rates, increasingly strict bank regulations, geopolitical uncertainty and generational transitions are putting greater pressure on traditional financing channels.
This is happening precisely as many firms are preparing to grow, professionalize or consolidate, meaning the need for bespoke, creative, long-term capital that works with the unique characteristics of a business, rather than against, is more necessary than ever.
This also makes the mantra of ‘no two businesses are ever the same – and neither should their financing be’ more meaningful than ever. Ultimately, bespoke financing isn’t so much about structure, but rather.
This is happening precisely as many firms are preparing to grow, professionalize or consolidate, meaning the need for bespoke, creative, long-term capital that works with the unique characteristics of a business, rather than against, is more necessary than ever.
This also makes the mantra of ‘no two businesses are ever the same – and neither should their financing be’ more meaningful than ever. Ultimately, bespoke financing isn’t so much about structure, but rather.
about strategic alignment. Alignment with the ownership goals, growth strategies, risk profiles, and governance and timing of founder or family-held companies.
Many in the financial industry pursue standardisation and are content to work from templates. That has never suited us. Standard solutions have certainly not served the companies we most want to support, and it’s not the approach that today’s European market needs.
This is why, for over twenty years, we’ve chosen not to fit anyone else’s financing model or follow the mainstream of capital markets. And this is why, if you’re a proud contrarian yourself, with a distinctly un-average business and distinctively non-uniform needs, we should talk.
Many in the financial industry pursue standardisation and are content to work from templates. That has never suited us. Standard solutions have certainly not served the companies we most want to support, and it’s not the approach that today’s European market needs.
This is why, for over twenty years, we’ve chosen not to fit anyone else’s financing model or follow the mainstream of capital markets. And this is why, if you’re a proud contrarian yourself, with a distinctly un-average business and distinctively non-uniform needs, we should talk.
"The need for bespoke, creative, long-term capital that works with the unique characteristics of a business, rather than against, is more necessary than ever."
