Middle-market direct lending finances growing businesses, says Gauthier Reymondier, head of European credit at Bain Capital, a private equity and credit powerhouse with more than $200 billion in assets under management.

Reymondier speaks about the fundamental difference between US and European economic growth, the impact of artificial intelligence and capex spending, and consumer habits. While European growth expectations have been very mediocre, more political stability would prompt consumers to spend more, he says, as has been the case in Spain, Portugal or Poland.

“Trust would be the biggest growth driver,” Reymondier says. “I think stability is important because we see in our market that without stability, people don’t spend.”

Bain Capital’s private equity arm this week announced a major deal to acquire

Bain Capital’s private equity arm this week announced a major deal to acquire Everllence, a marine power and turbomachinery manufacturer, in a carve0out from Volkswagen Group, and Reymondier also weighs in on the future prospects for M&A and LBOs.