Rothschild, the independent investment bank, has appointed two mezzanine specialists to run a fund that will seek to provide direct lending to small and medium-sized enterprises, becoming the latest non-banking institution to enter the lending arena.

Rothschild plans to carry out the first close of a SME direct lending fund, called Rothschild Five Arrows Credit Solutions, in the first few months of next year, according to a person familiar with the matter.