Analysis

The Deloitte Alternative Lender Deal Tracker Q3 2016

Alternative lenders: Pollination of the European markets

The Deloitte Alternative Lender Deal Tracker now covers 50 leading Alternative Lenders, with whom we track primary mid-market deals across Europe.

The thirteenth issue covers data for the third quarter of 2016 that closed with 67 deals completing, representing a 7% increase in deal flow on a last 12 months basis in comparison with the previous year.

Key highlights

  • The number of deals covered has increased to 862 transactions over the past 16 quarters
  • This issue covers data for the third quarter of 2016 that closed with 67 deals representing a 7% increase in deal flow on a last 12 months basis in comparison with the previous year
  • Whilst on the whole, Alternative Lenders in Europe increased their deal flow in Q3, the UK deal flow decreased, by 21% on an LTM basis, with the rest of Europe more than offsetting UK’s reduction, increasing by 29% vs. prior year
  • This comes as a result of an increasing acceptance of Alternative Lenders in overseas jurisdictions traditionally dominated by banks and well as uncertainty associated with Brexit.
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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 and 2015 and into 2016.

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. 50 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.


Previous editions

Deloitte Alternative Lender Deal Tracker - Q2 2016
Deloitte Alternative Lender Deal Tracker – Q1 2016
Deloitte Alternative Lender Deal Tracker – Q4 2015
Deloitte Alternative Lender Deal Tracker – Q3 2015

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