Invite some of the most seasoned hands amongst the UK-based debt and mezzanine community to discuss how they see European leveraged finance at present and you might expect them to be resoundingly bullish. After all, deal flow has picked up, some very sizeable LBOs have been completed (think Seat Pagine Gialle, Debenhams and Fiat Avio) and the mid-market seems to be bubbling away nicely in the region's key countries.
Leverage matters
When PEI sat down with five seasoned leveraged finance professionals in London recently, it became clear that although business is good, they were keen to tread carefully in today's market. There also seemed to be a growing sense that the dynamic between sponsor and finance provider has changed – to the sponsors' advantage. We talked to them about the issues behind this shift and heard why getting it right matters all the more today.
