Fidelity to launching a fund to provide asset-backed loans to European companies with annual earnings of €5m to €30m.

This potentially disintermediates banks and fintechs, at a time when banks are struggling. Recent events at lenders such as Credit Suisse have left a larger foothold open for investors such as Fidelity to get into the large, high-value European midsized corporate lending market.

Fidelity’s fund would earn from loan interest as well as deal fees.

Fidelity says they see a continuing gap in this market.

Other funds managers may want to consider this business line, and incumbent lenders might want to look at improving the efficiency of the capital and risk transfer they use for lending.