Alternative Lender Deal Tracker

Direct Lenders on a path to disruption with gorilla deals

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Key findings

  • A slow 4% increase in Alternative Lending deals on a 12 month basis in comparison with the previous year shows that while Direct Lenders are still actively targeting deals, the rate of growth in deal flow is slowing as the market matures.

  • While capital deployment in terms of number deals has slowed fund raising continues apace with a record $16.9bn being raised in Q1 alone (versus $7.9bn in Q1 last year) by Alternative Lenders including Bluebay’s Direct Lending Fund III raising €6bn to deploy in Europe. Similar to Private Equity funds Alternative Lenders will be under pressure to deploy the large quantities of funds. As mentioned previously, increased deployment across the European continent and targeting larger debt deals seems to be the response from managers.

  • The decision by the ECB to renew its monetary stimulus programme has been a boon for both equities and global bonds. Combined with the dovish sounds coming from the US Fed seems to imply that the New Normal of easy monetary policy will persist into the future. For direct lending this means that base rates will remain low and companies under pressure have been given more breathing room during changing macro-economic times.


Insights into the Deloitte Alternative Lender Deal Tracker

Currently covers 66 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. This decision was made in order to improve the quality of the data in the Deal Tracker as well as the insights drawn out of that data.

We will continue to request the data on a quarterly basis and share this information with you, the private participants, on a quarterly basis as well as updating the online fragment on the website. On this basis, the next version of the Deal Tracker will be released between late August and mid-September covering the period of January to July 2019.

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. 67 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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