Structurally sound

Senior and unitranche dominate European deals.

Analysis of European deal structures shows that first lien remains by far the popular way of financing mid-market businesses.

Deloitte’s Alternative Lender Deal Tracker Q4 2017 shows that across both the UK and Europe, 82% of all deals were either senior debt or unitranche structures.

Unitranche has been more popular in the UK, accounting for 56% of all deals, while in the rest of Europe it is still the most popular structure, accounting for half of all deals recorded by Deloitte.

Second lien has been relatively popular in the UK and makes up 8% of deals, while in the rest of Europe, mezzanine debt has taken a more prominent role.