Debt in the Med

Southern Europe’s private debt market remains small, but growing dealflow bodes well for the future.

The European private debt market has been heavily dominated by the continent’s major economies in the UK, France and Germany, but data shows things are picking up in Southern Europe.

As the graph shows, dealflow was very low back in 2014 but has been rising steadily in Spain and has also settled at a higher level in recent years in Italy.

Southern European lenders say the market is beginning to pick up despite troubles in the region; including the political chaos caused by the Catalonia independence referendum, Italy’s burden of non-performing loans and continued problems in the Greek economy since the euro crisis.

Despite all this major players such as Pemberton, Alantra and ICG have invested in the region and funds based in the region are also seeing success in raising funds.