Alternative lending tracker, corporate finance, debt & capital advisory

Insights

Deloitte Alternative Lender Deal Tracker Q3 2015

Direct Lenders’ fund raising hits another gear

The Deloitte Alternative Lender Deal Tracker covers 38 leading Alternative Lenders, with whom we track primary mid-market deals across Europe.

This ninth issue covers data for the third quarter of 2015 that closed with 61 deals completing, representing a 14% increase in deal flow in comparison with the previous year (Year-on-Year).

The continued recovery in the Irish economy has led to an increase in deal flow, in both refinancing’s and new fund raisings for growth and M&A activity. Alternative Lenders are increasingly playing a key role in funding this activity, with both unitranche and subordinated debt funding solutions becoming more prevalent in the Irish market. 

Alternative lending tracker, corporate finance, debt and capital advisory

Key Highlights

  • The number of deals covered has increased to 546 transactions over the past 12 quarters.
  • To date, the Deal Tracker has covered 10 Irish transactions, however our expectation is for this to increase, as new players enter the market and borrowers become more familiar with the funding products offered by Alternative Lenders.
  • This issue covers data for the third quarter of 2015 that closed with 61 deals completing, representing an impressive 14% increase in deal flow in comparison with the previous year (Year-on-Year).
  • In the last 12 months, 21% of the alternative lending transactions were completed with family and founder owned businesses without a majority private equity sponsor.
  • Direct lenders have hit another gear in their fund raising activities with 10 mainstream Direct Lenders raising over €13bn in the course of 2015.
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Background

The Alternative Lender community is becoming increasingly relevant for European mid-market companies. In 2013 we saw activity strengthening from Alternative Lenders, in particular with the success of the unitranche product. As expected, this trend continued through 2014 and into 2015, against a backdrop of a strongly improving economic outlook.

Our Debt & Capital Advisory team has been in active dialogue with the leading European Alternative Lenders to set up a quarterly database, which monitors the primary European mid-market deal activity involving these lenders. 38 alternative debt funds currently participate in the Deloitte Alternative Lender Deal Tracker and the results are released to interested parties on a quarterly basis in a public version of the tracker.

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