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Analysis

The Deloitte Alternative Lender Deal Tracker

Expanding into new markets

The Deloitte Alternative Lender Deal Tracker covers 64 leading Alternative Lenders, with whom we track deals across Europe. This issue covers data for the first quarter of 2018 and includes 1381 Alternative Lender deals, representing an increase of 22% in deal flow on a last 12 months basis in comparison with the previous year.

Key highlights

  • Lending in Q1 reached 76 deals, a 7% decline in deal volume compared to the same period in 2017.
  • Although deal volume slightly declined in the first quarter of 2018, the penetration of Direct Lending continues, increasing by 22% year on year.
  • Managers are beginning to recognise the relative opportunity of direct lending in less mature markets and are thereby increasing allocations to these jurisdictions.
  • Within the UK the Business, Infrastructure & Professional Services (BIPs) industry remains the most dominant user of Alternative Lending with a 25% share, followed by TMT with 16%.
  • Direct Lending Funds are increasingly calling on banks to provide subscription lines and leverage facilities, in an effort to increase operational flexibility and boost returns.
  • In this edition, we focus on the Nordics, which has exhibited a 31% year-on-year increase in Direct Lending
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Explore the deal tracker data in more detail below

Insights into the Deloitte Alternative Lender Deal Tracker

Currently covers 64 leading Alternative Lenders. Only primary mid-market UK and European deals are included in the 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.

How much funding has been raised by which Direct Lending managers?

Global
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Global Direct Lending fundraising by quarter

Background

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 deal activity involving these lenders. 60 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.

Deloitte Debt Advisory

The Debt Advisory team is an integral part of Deloitte's Financial Advisory practice, providing independent advice and world class execution across the full spectrum of debt markets through the firm's global network. We have a team dedicated to raising capital from alternative lenders.

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