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Alternative Lender Deal Tracker - Autumn 2019

Direct lender deployment remains in lockstep with exponential fund raising

The Deloitte Alternative Lender Deal Tracker provides an insightful overview of alternative lending activity across Europe, and the key trends, developments and outlook for this area.

This is the twenty-second edition of the Deloitte Alternative Lender Deal Tracker which covers data for H1 2019. We now collect information from 55 leading Alternative Lenders, with whom we track primary deals across Europe.

Key Findings: Autumn 2019

  • This issue covers data for the first half of 2019 and includes 178 Alternative Lender deals. While this represents a 3% decrease in the number of deals on an LTM basis, the average deal value more than offset this as evidenced by the strong growth in deployment.
  • The quantum of capital deployed appears to be keeping pace with €22.6bn deployed in H1 2019 compared with €38.1bn in 2018 and €26.8bn in 2017. The inference is that Direct Lenders are printing larger deals to keep up with their fund raising.
  • Global fund raising had a bumper H1 2019 with $28.8bn of funds raised for direct lending strategies compared with $52.1bn for 2018. In Europe, the largest were BlueBay with €6bn and Alcentra with €5.5bn. Additionally, a number of new managers have entered the European market with the Golub Capital, the US heavyweight, set to open a London office and smaller funds, including Allseas Capital and Alvin Partner, offering smaller tickets, flexible capital crossing debt and equity.
  • ECB’s 10bps cut and US Fed’s 50bps cut reinforce fixed-income investors’ belief that the new normal is lower for longer despite calls for fiscal stimulus to replace monetary stimulus coming from European financial leaders including the incoming ECB chief, Christine Lagarde.
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