While the UK remains Europe’s most active market for private debt, it may be losing its lustre as a source of deals.
Fundraising activity in Europe remains extremely heavily focused on the UK, but increasingly those funds have a pan-European or global outlook.
The result is fewer firms are investing exclusively in the UK since a peak in 2013. While it may be tempting to link the issue to the country’s decision to leave the EU, the decline set in well before then.
The increased attraction of continental Europe may also be a factor that has led to more funds going pan-European instead of only focusing on the UK; and mid-market deal numbers from Deloitte show continued interest in providing debt to UK countries.