Analysis

The Deloitte Alternative Lender Deal Tracker Q1 2017

The race for GDP growth: Europe closes in on US

The Deloitte Alternative Lender Deal Tracker now covers 59 leading Alternative Lenders, with whom we track primary mid-market deals across Europe.

The fifteenth issue covers data for the first quarter of 2017 that closed with 79 deals completing, representing a 7% increase in deal flow on a last 12 months basis in comparison with the previous year.

Business confidence remains volatile. The first quarter results from the Deloitte Chief Financial Officers’ survey showed that sentiment has continued its positive momentum despite looming uncertainties related to the continued challenges around the strength of the Swiss Franc and its implications for trade.
The Swiss National Bank continues to intervene in the markets to counter fight an excessive appreciation of the currency in times of increased uncertainty and market volatility in which the Swiss Franc is regarded as a safe haven.

Whilst the prevalence of funds in the market is not new, their penetration across Europe has increased significantly albeit at a lower pace in the Swiss market. Despite an increasing interest of funds, banks and the debt capital market continue to hold the lion’s share in the low interest rate environment.

Key highlights

  • 2017 has been a bumper start for Europe where in Q1 2017 we saw US$9.1bn of closings, nearly twice the value of all of 2016 European fundraising.
  • The number of deals covered has increased to 1011 transactions over the past 18 quarters.
  • This issue covers data for the first quarter of 2017 that closed with 79 Alternative Lender deals representing a 7% increase in deal flow on a last 12 months basis in comparison with the previous year.
  • Of 79 deals we observed in Q1 2017, over 60% were completed outside of the UK, representing a significant increase in comparison with the previous quarter.
  • In the race for growth, Europe is gaining strength and is closing in on the US, with GDP across the Eurozone increasing by 0.6% quarter-on-quarter during the first three months of 2017, and 1.9% on prior year versus 2.0% for the US.
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