City scape

Services

Alternative Lending Debt Advisory

The market leader for mid-market alternative lender transactions

Deloitte Debt Advisory offers the best in breed alternative lender capability in the UK.

The team knows the debt market and has strong relationships with private debt funds operating across Europe. The team acts as the linking pin between alternative lenders and borrowers.

Unparalleled global alternative lending

Deloitte's alternative lending team offers an unparalleled global alternative lending platform within the Deloitte debt advisory team. They differentiate themselves through:

  • Strong relationships with key decision makers within the funds
  • Understanding investment focus and criteria
  • Knowing the reputation and the performance track record of these funds
  • Completion of more than 20 deals with alternative lenders
     
Colleagues using their mobile devices to communicate while out of the office

Typical scenarios

Innovative structures

  • Raising of complex products (unitranche, 2nd lien, Mezz, Holdco PIK and preference shares)
  • Long term debt capital from institutional investors (10-15 years)
  • Growth capital when there is no equity available
  • Incurrence based covenants (private bond style)
  • Dividend recapitalisation

Complex credits

  • More difficult refinancing opportunities
  • Highly leveraged and flexible structures
  • High risk situations or companies that have gone through restructuring
  • Overleveraged companies requiring flexible non-bank capital
  • Companies where banks have moved the lend into their non-core book and are looking to exit relationship

Sector and geography

  • Unloved sectors for which banks and traditional lenders shy away
  • Certain geographies where less bank funding is available 

 

City scape at night

Deloitte Alternative Lender Deal Tracker Q1 2017

The Deloitte Alternative Lender Deal Tracker now covers 59 leading Alternative Lenders, with whom we track primary mid-market deals across Europe.

Find out more

Examples of our work

Buy As You View

  • Refinancing of Buy as You View Limited (Rutland Partners) in August 2014
  • Unloved sector by banks which led to financing by alternative lenders

Zenith

  • Refinancing of Zenith Vehicle Contracts Limited (HgCapital) in February 2014
  • The financing included a portability feature

Chiltern International

  • Refinancing and acquisition capital for Chiltern in July 2014
  • Delivered a debt package with significant reduction in margin despite the existing non-call feature with the incumbent lender
     
City scape at night

The Alternative Investment Management Association: Financing the Economy

Deloitte recently hosted the launch of The Alternative Investment Management Association’s (AIMA) research paper ‘Financing the Economy – the role of alternative asset managers in the non-bank lending environment’.

AIMA’s research shows that hedge fund firms and other alternative asset managers are playing an increasingly important role in financing the economy. It also found that the most popular borrowers of non-bank private debt are small and medium-sized enterprises (SMEs). Such businesses are typically too small to raise capital through the public corporate bond market and have been finding it difficult to borrow from the traditional banking sector since the crisis.

The AIMA paper also finds that private debt funds typically use little or no leverage and are structured in a way to prevent bank-style ‘runs’ or other systemic problems.

Deloitte’s UK Alternative Lending Debt Advisory team provided their expertise on the paper.
Find out more.

Financing the economy