Insights

The Deloitte Alternative Lender Deal Tracker Q4 2015

Increased market volatility benefits direct lenders

The Deloitte Alternative Lender Deal Tracker covers 42 leading Alternative Lenders, with whom we track primary mid-market deals across Europe.

This tenth issue covers data for the fourth quarter of 2015 that closed with 63 deals completing, representing a 9% increase in deal flow in comparison with the previous year (Year-on-Year).

Key Highlights

  • The number of deals covered has increased to 629 transactions over the past 13 quarters
  • This issue covers data for the fourth quarter of 2015 that closed with 63 deals completing, representing an impressive 9% increase in deal flow in comparison with the previous year (Year-on-Year)
  • In the last 12 months, 24% of the alternative lending transactions were completed with family and founder owned businesses without a majority private equity sponsor
  • Despite the volatility experienced in global equity markets in early 2016, European direct lending activity continues apace. This trend is reflected in the Irish market, with the number of transactions involving Alternative Lenders here increasing, as borrowers become more familiar with the products offered by these now well established market players.
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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, 2015 and into 2016, against a backdrop of a strongly improving economic outlook.

Our Debt 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. 42 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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