Bank Pullback in Europe Creates Direct Lending Opportunities for Institutional Investors, According to Alcentra

Bank Pullback in Europe Creates Direct Lending Opportunities for Institutional
                       Investors, According to Alcentra

New Regulations Forcing Structural Change in Industry

PR Newswire

NEW YORK and LONDON, Feb. 19, 2013

NEW YORK and LONDON, Feb.19, 2013 /PRNewswire/ --Institutional investors
have a growing opportunity to provide loans directly to European mid-sized
companies as European banks reduce their lending, according to Alcentra, the
sub-investment grade investment specialist for BNY Mellon.

Alcentra's comments are published in its January white paper, European Banking
Changes Create New Opportunities for Direct Lending, which notes that new
regulations are driving European banks to cut back on lending to mid-sized
companies. The pullback by the banks has created the opportunity for new
lenders.

"Becoming a lender to mid-sized companies can be particularly compelling to
institutional investors," said Graeme Delaney-Smith, head of European direct
lending and mezzanine investments for Alcentra and author of the report. "We
believe institutional investors are able to demand more attractive terms than
in the broadly syndicated loan and high-yield bond market, although this is at
the expense of liquidity."

In Europe, banks account for a substantially greater share of corporate
financing than in the United States, the report said. As banks continue to
deleverage to meet the new regulations, credit will become less available to
companies that need it, according to the report.

The report notes that European governments recognize the need to provide
sufficient credit for middle market companies and have launched programs to
encourage greater non-bank lending to fill the gap. In the UK, Alcentra is
one of four investment firms participating in the HM Treasury's recently
launched Business Finance Partnership program to invest up to 1.2 billion
pounds for loans to mid-sized businesses operating in the country.

While the report focuses on the opportunities available to institutional
investors, it also cautions that these institutions should undertake highly
detailed credit analysis of the borrower before investing. Delaney-Smith
said, "As this is a specialized market, we believe investors seeking to
maximize returns and avoid default risk should work with experienced managers
who can perform the credit analysis and leverage their expertise in this
market."

Notes to Editors:

Alcentra is an asset management and investment group focused on sub-investment
grade debt capital markets in Europe and the United States. The group has an
investment track record that dates back to 1998 and spans across 48 separate
investment strategies totaling approximately $15.1 billion. Alcentra is more
than 97.2 percent owned by BNY Mellon and 2.8 percent owned by the employees.
'Alcentra' refers to both Alcentra Limited and Alcentra NY, LLC. Assets under
management include assets managed by both companies. More information can be
found at www.alcentra.com.

BNY Mellon Investment Management is one of the world's leading investment
management organizations and one of the top U.S. wealth managers, with $1.4
trillion in assets under management. It encompasses BNY Mellon's affiliated
investment management firms, wealth management services and global
distribution companies. More information can be found at www.bnymellon.com.

BNY Mellon is a global investments company dedicated to helping its clients
manage and service their financial assets throughout the investment lifecycle.
Whether providing financial services for institutions, corporations or
individual investors, BNY Mellon delivers informed investment management and
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31, 2012, BNY Mellon had $26.7 trillion in assets under custody and
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SOURCE BNY Mellon

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