The Deloitte Alternative Lender Deal Tracker - spring 2020

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The Deloitte Alternative Lender Deal Tracker Spring 2020

Direct Lenders' first real test

The Deloitte Alternative Lender Deal Tracker now covers 57 leading Alternative Lenders, with whom we track 2,2272 primary mid-market deals across Europe.

This issue covers data for 2019 and includes 484 Alternative Lender deals. Whilst this represents a 13% increase in the number of deals from 2018, the 292 deals in H2 2019 represents 52% increase on H1 2019. Due to COVID-19, this trend is unlikely to continue in H1 2020.

Key highlights

  • 484 new deals were recorded throughout 2019 across the EU, representing a 13% increase in deal flow on a last 12 months basis in comparison with the previous year.
  • Following a strong year in 2019 & start of 2020 with increased activity in both Belgium and the Netherlands, direct lenders have taken a step back to see how the impact of COVID-19 unfolds.
  • The current pandemic will be the first real test for the direct lender asset class!
  • We expect to see end investor interest to pivot towards Credit Opportunity funds with an increase in flexibility of mandate to take advantage of the current climate.
  • Nevertheless, primary activity could still be witnessed during recent weeks and months whereby market leading direct lending funds have continued to show interest for strong credits that are navigating the crisis is solidly.
  • An example of this is the acquisitions in May 2020 of Corilus, a leader in medical software solutions for the primary care market in Belgium, by Gilde Buy Out Partners that was backed by a direct lending financing package.

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