White Paper: The Case for ABF in the European Lower Mid-Market

Vertis Investment Team

18 Jun 2026

Capital has flooded into European private credit. Spreads have compressed, covenants have weakened, and stress is accumulating silently in the upper mid-market. Occasional "surprises" lead to discontinuous price movements. It is a long grind through marks and valuations. We call it the Dodgeball Market. This paper makes the case for the other end of the risk / reward spectrum - where collateral is identifiable, structures are bespoke, and difficult markets reward downside-protected returns. 42 pages on what we do, how, and why now.

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Or: Why PE Should Focus on Purchase Price Multiples. In November 2023 we set out the Dodgeball Market thesis. We argued that the cycle was overextended, that “adjusted” numbers were flattering reality, and that our base case was a long grind through private market marks and valuations, with occasional discontinuities.

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Or: What if the collateral isn’t there at all? Two years ago, we posted on LinkedIn about the Dodgeball Market: “This is a golden age of fraud. Bubbles tend to attract financial shenanigans and we are starting to see the fallout of this.” While the prospect of defaults may

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WHAT IF 5 IS THE NEW 5?

Creative Disruption

WHAT THE...FRAUD?

Fibre Indigestion