Analysis

The Deloitte Alternative Lender Deal Tracker Q2 2017

Liquidity in all shapes and forms

The Deloitte Alternative Lender Deal Tracker now covers 58 leading Alternative Lenders, with whom we track primary mid-market deals across Europe. The sixteenth issue covers data for the second quarter of 2017 that closed with 70 deals completing, representing a 5% increase in deal flow on a last 12 months basis in comparison with the previous year.

This quarter, John Doddy, Head of Debt and Capital Advisory, Ireland, shares his views on developments and opportunities in the Irish market.

Alternative Lending in action: Spotlight on the Irish Market

Historically dominated by local banks, the Irish lending market has experienced a period of unprecedented change since 2008. What has emerged is a smaller traditional banking sector containing fewer active players with a reduced appetite for risk. This development has resulted in a funding gap, most notably in the Irish property and SME sectors. 

  • The level of activity continues to grow year on year in Ireland, we are aware of 91 deals completed in the Irish market since 2011, provided by 18 different funders.
  • 34% of these deals were in the property sector.
  • The typical Irish Direct Lending fund size is c.€100m – €500m, with the typical deal size being c.€10m – €15m.
  • Unitranche and mezzanine finance (predominantly for property transactions) are the most common forms of debt provided in the Irish market.
  • With the improving Irish economy we are seeing increased levels of private equity sponsored deals, with both Irish and UK based Direct Lenders demonstrating a strong appetite to offer unitranche structures.
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Insights into the Deloitte Alternative Lender Deal Tracker

Currently covers 58 leading Alternative Lenders. only primary mid-market UK and European deals are included in survey

600
Total deals completed
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300
Euro deals completed
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274
UK deals completed

* For the purpose of the deal tracker, we classify senior only deals with pricing L + 650bps or above as unitranche. Pricing below this hurdle is classified as senior debt.

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