Alternative Lender Deal Tracker

European recovery drives stampede of deals and ESG linked issuances

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H1 2021 key findings

  • “All systems go” continues to be the overarching message in H1 2021, with 333 deals closed to date. The 147 deals closed in the second quarter marked a Q2 record for the Alternative Lender Deal Tracker, continuing on from the frenetic start to the year which saw a revised figure of 186 deals closed in Q1.

  • While still the most active lending space in Europe, the UK debt markets held a slightly smaller share of deal flow in H1 overall compared to the first quarter, down from 41% in Q1 to 38% for H1. Meanwhile, France, Germany and the rest of Europe continued their collective post-COVID-19 recovery and increased their share of deals to 20%, 15% and 27% respectively for H1.

  • By sector, after seeing TMT deals dominate in Q4 2020 and Q1 2021, Business Services deals surged in the second quarter to equal TMT deals in H1 2021, with both comprising 22% of the completed deals to date. Healthcare trailed close behind with 18% of total deals, whilst Financial Services and manufacturing deals remained constant at 13% and 8% respectively.

  • In terms of structure, a sharp increase in senior lending in Q2 drove the percentage of Unitranche deals down from 66% in Q1 to 63% for H1 overall, with senior lending facilities comprising over 25% of the first half of the year’s borrowings.

  • By deal purpose, Leveraged Buyout (LBO) activity remained strong and comprised 44% of H1 deals, though growth capital deals in particular saw a substantial surge in numbers, going from 6% of deals in Q1 to 13% in Q2, and 9% for the HY. The H1 total of 31 growth capital deals suggests borrowers are becoming increasingly willing to support organic growth opportunities for expanding businesses.

  • Deal flow has remained at impressive levels throughout the spring and early summer of 2021 and shows no sign of slowing down in the coming months, as capital continues to be deployed at record rates across the private debt market, and borrower appetite for new debt remains strong across sectors.


Insights into the Deloitte Alternative Lender Deal Tracker

Currently covers over 50 leading Alternative Lenders. Only UK and European deals are included in the survey.

Total deals completed
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Euro deals completed
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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



Cumulative number of deals per country

Largest geographic markets
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