deals

Private debt funds are increasing their presence in European LBOs and refinancings, particularly in the UK and Germany.

In Europe, 2018 is on course to see record private debt deal activity with a 34 percent annual rise.

The latest version of the Alternative Lender Deal Tracker shows political events have not derailed Europe’s direct lending activity, though fundraising has fallen.

Seven slides show the state of play for the asset class on the continent, and what curve balls might loom.

Data from the Deloitte Alternative Lender Deal Tracker shows activity has dropped slightly, but private debt continues to gain traction in Europe.

Has the European private debt market had it too good for too long? There are no signs of panic, but nerves are jangling as loose structuring, leverage, competition and political volatility compete to be the asset class’s chief bogeyman.

The asset class is at an important junction in its history, both in terms of its growth trajectory and the external pressures it faces. Here are the top themes.

Debt funds have been rising in prominence in German mid-market debt since their first appearance in 2013.

Continued pressure on banks, the development of the German market and the evolution of large funds were key issues raised.