Alternative Lender Deal Tracker

Direct lenders deployment keeps pace with exponential fundraising

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Key findings

  • This issue covers data for the first half of 2019 and includes 178 Alternative Lender deals. While this represents a 3% decrease in the number of deals on an LTM basis, the average deal value more than offset this as evidenced by the strong growth in deployment.

  • The quantum of capital deployed appears to be keeping pace with €22.6bn deployed in H1 2019 compared with €38.1bn in 2018 and €26.8bn in 2017. The inference is that direct lenders are printing larger deals to keep up with their fund raising.

  • Global fund raising had a bumper H1 2019 with $28.8bn of funds raised for direct lending strategies compared with $52.1bn for 2018. In Europe, the largest were BlueBay with €6bn and Alcentra with €5.5bn. Additionally, a number of new managers have entered the European market with the Golub Capital, the US heavyweight, set to open a London office and smaller funds, including Allseas Capital and Alvin Partner, offering smaller tickets, flexible capital crossing debt and equity.

  • ECB’s 10bps cut and US Fed’s 50bps cut reinforce fixed income investors’ belief that the new normal is lower for longer despite calls for fiscal stimulus to replace monetary stimulus coming from European financial leaders including the incoming ECB chief, Christine Lagarde.


Insights into the Deloitte Alternative Lender Deal Tracker

Currently covers 55 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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Changes in format of the Deal Tracker

The Deloitte Debt & Capital Advisory team has taken the decision that going forward the full Deal Tracker publication will be released on a twice-yearly basis with the first edition covering H1 being released in Q3 and the second edition covering H2 being released in Q1 of the following year. However, the online interactive fragment on this webpage will be updated on a quarterly basis so you will still have information on a quarterly basis.

Background

Our Debt Advisory team has been in active dialogue with the leading European Alternative Lenders to set up a quraterly database, which monitors the primary European deal activity involving these lenders. 55 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.

Debt & Capital Advisory

The Debt and Capital 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.

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Key contact

Floris Hovingh

Head of Alternative Capital Solutions


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