Direct lenders deployment keeps pace with exponential fundraising Deloitte Alternative Lender Tracker Autumn 2019 Financial Advisory This issue covers data for the fi rst half of 2019 and includes 178 Alternative Lender deals. While this represents a 3% decrease in the number of deals on an LTM basis, the average deal value more than off sets this as evidenced by the strong growth in deployment.
Deloitte Alternative Lender Deal Tracker editorial team
Floris Hovingh Andrew Cruickshank Shazad Khan Tim Mercorio Partner Director Manager Assistant Manager +44 (0) 20 7007 4754 +44 (0) 20 7007 0522 +44 (0) 20 3741 2051 +44 (0) 20 7007 6841 [email protected] [email protected] [email protected] [email protected] Deloitte Alternative Lender Deal Tracker Autumn 2019 | Contents
Contents
Deloitte Alternative Lender Deal Tracker Introduction 02
Alternative Lending in action: Case study 06
Alternative Lending in action: This time it's different 10
Alternative Lender Deal Tracker H1 2019 Deals 13
Direct Lending fundraising 20
Insights into the European Alternative Lending market 32
Deloitte Debt and Capital Advisory 43
© Deloitte Alternative Capital Solutions 01 Alternative Lender Deal Tracker H1 2019 Data Introduction 02 | Deloitte Alternative Lender Deal Tracker H1 2019 Data Introduction H1 2019 Data Tracker Deal Lender Alternative 2019 Autumn Tracker Deal | Deloitte Lender Alternative Deloitte covers 55 major Lenders Alternative whomis Deloitte tracking with deals across Europe. value more than offthis as evidenced sets strong in deployment.by growth Our report LendingAlternative deals compared to the previous year. However, the average deal that in the 12 months to the end of the fi half of rst 2019,there was a 3% decrease in editionIn of this the Lender Alternative Deloitte twenty-second Deal Tracker, we report Introduction Tracker Deal Lender Alternative Deloitte Whilst the US and China are due to re-start re-start to due are China and US the Whilst bonds. government and gold as such havens safe for equities, including assets, riskier swap to investors drove This future. the in policy monetary of easing continued expect investors suggesting inverted, curves yield UK and US the that was action eff Another this of sheet. ect balance its of down wind the ending was it announcing to addition in 2.00%, to cuts point basis 25 two but one not implementing Fed the with rates, interest US in reduction a to due also were movements these part in though China, and US the between those particularly edginess, increasing this of heart the at are Trade tensions euro. the and dollar 1:1.22 the of against low atwo-and-a-half-year to fell sterling and years two in (3%) fall one-day biggest its suff 500 S&P The ered worse”. “something to pointed signs all August early in though edgy, increasingly become have markets fi year this of start nancial the Since worse? something or landing asoft for heading are we are is, question The time. some for slowing been has economy global The © Deloitte Alternative Capital Solutions decades with its problems compounded by by compounded problems its with decades two fiin its in recession already is fth Italy Europe, in Elsewhere recession. technical a in Germany put would which quarter, third the in continue will this chance afair is There years. six for slowest its June, to year the in 0.4% to slowed growth output 0.1% by annualised quarter meaning second the in shrank economy year. The of has output since the contracted the start confidence has slumped and manufacturing business German globally. surplus trade largest the runs it as exposed especially is exporter, biggest third world’s the Germany, powerhouse, Europe’s data. Markit accordingexperiencing contraction, to IHS are world the around countries of 60% than more where sector, manufacturing the in pronounced effparticularly are ects The growth. slower for aconduit as acting now are growth global and globalisation of era the during created networks political and economic the that ironic sadly seems it and unlikely seems solution comprehensive a means disagreement the of nature wide-ranging the October, in negotiations levels of growth since the fi the since crisis. growth of nancial levels weakest the forecast now and year the of start from forecasts growth GDP global their cut IMF the July in that surprise no as comes therefore it backdrop, this Amongst Ratings. Fitch by downgrade a credit avoiding narrowly country the and minister prime as Conti Giuseppe of resignation the 1937 3 to date to completed Deals LT basis an on flow deal in Decrease Alternative Lender Deal Tracker H1 2019 Data Introduction 03
© Deloitte Alternative Capital Solutions urrently an overhang of un-deployed A good example is Permiras recent €320m unitranche financing in support of Francisco Partners Denmark’s acquisition of EG software, a market where Danish banks patch. their defended notoriously have Furthermore, independent research performed by Deloitte from 50 senior direct shows that whilst managers lending the number of direct lending deals declined by on4% basis deployment an LTM to Jun 2019, numbers remained steady at c. €22.6bn in This follows 2019. H1 an exponential of deployment direct lending in increase €26.8bn€16.7bn, 2017 in 2016, and €38.1bn respectively.and 2018 This data potentially puts cold water on the fears that there is c direct lending capital. In fact, the data support quite the opposite. Not only has lockstep in with remained deployment to a number of sectors, including the casual dining and retail subsectors of the service industry, though no surprise that the manufacturing sector has borne the majority of the initial brunt, including Aston Martin, Lecta, Pro-Gest, Schmolz & Bickenbach and Thyssenkrupp, allof which have suffered from ratings downgrades and pricing pressure. Turning to the Direct Lendingmarket, Alcentra continued the trend of private debt managers on the crusade for ever larger AuM, reaching €5.5bn in its latest round of fundraising. Pemberton also joined the ranks, closing its latest €3.2bn fund in July. As we have previously commented, direct lenders continue to take market share in Europe. This in itself is not new, but what is interesting is that they are beginning to seriously penetrate markets that are dominated by traditional bank lenders. | Deloitte Alternative Lender Deal Tracker Data2019 H1 Introduction So how long have we got? Difficult to say, though all of the hallmarks of a fragile market are starting to emerge in anger. According to the Financial Times, around 30% ofthe bonds issued by governments and companies worldwide are trading at negative yields and therefore of c.$17tn outstanding debt is being paid for by its own creditors. The concept of making an investment where you are certain to get back less than you paid via the present value of interest and principal if held to maturitydoesn’t sound like an attractive thesis. But it is now a fact of life in the fixed income market. Investors are in effect paying to have someone look after their money. When this many are willing to pay for the “security” of losing only a little bit of money as a hedge against losing quite a lot, you know there’s something deeply wrong in the world. Investors nonetheless remain hungry for yield. Whilst on the subject of leveraged volatility the amongst despite loans, other asset classes, the market charged on unperturbed through the summer period with roughly of pipeline €13.6bn issuance in August. July was alsothe busiest month in the YTD period with total loan volumes in the monthreaching alone. €9.1bn What is interesting is that according the to LCD, size of Europe’s leveraged loan market has doubled in less than five years, now standing at European €201bn. loans remain attractive then, though there are some signs of stress. Whilst this is not evidenced in the default rate of LCDs European Leveraged Loan Index (which remains at zero as of August) the secondary market, which as of the 5th September stood at 94.3%, paints an increasingly negative picture. In the main this is currently limited
Deloitte Alternative Lender Deal Tracker Autumn 2019 A number of indicators therefore point towards a global downturn. As history shows us,yield curve inversions often occur before recessions. As of today, financial markets assume that central banks will come to the rescue by easing monetary policy and with the Federal funds rate at2.00%, the US has scope todo so. Further lowering rates in Europe is however a lot more problematic. On the September 12th Mario Draghi, the ECB’s outgoing president, announced an additional basis 10 point cut to its benchmark rate from -0.4% to -0.5%, the lowest on record. It is for this reason that the ECB also announced thatit would restart its quantitative easing programme, buying €20bn of bonds every month from November until inflation expectations came “sufficiently close to, but below, 2 per cent”, having called a halt to this last December. Alternatively, growth may also get a helping hand from among The mood government. local politicians and policymakers on public sector austerity seems to be turning – both Mario Draghi and his successor Christine Lagarde, have urged euro area countries to use fiscal policy to boost spending. As a consequence, governments are likely to face growing pressure to act against the downturn by increasing public spending and cutting taxes. In late August the new UKgovernment announced significant increases in public spending and a review of the borrowing rules which many believes signals the end of a ten-year programme of debt reduction. As we all know, the UK is not without its problems and remains deep in political crisis. Just two weeks into the job, the country’s new prime minister, Boris Johnson, lost his parliamentary majority and suffered a major defeat in his efforts to extract the UK from the EU when a bill was passed to end the option of a no-deal Brexit October. on 31st Deloitte Alternative Lender Deal Tracker Autumn 2019 | Deloitte Alternative Lender Deal Tracker H1 2019 Data Introduction
fundraising, as private debt funds continue to raise record amounts H1 2019 deals completed of capital even as the economic warning signs are flashing but the asset class is likely to provide a useful source of counter-cyclical credit at the time banks and traditional capital markets players withdraw from the high yield market due to punitive capital retention requirements. Add to this, new funds are entering both the top and bottom of the European market including Golub capital, the US heavy weight looking to set up an office in London, and smaller funds like Alvin and Allseas capital, joining the ranks of Prefequity and Harwood capital offering smaller tickets but flexible capital crossing debt and equity risk. 1 Deals Invariably, more risk has been taken on by some direct lenders in order for deployment to remain in lockstep with funds raised, though in the main, a number of accomplished managers have ran e er an t er uropean raised lower yielding senior opportunity funds to deploy in the more liquid large cap market. These transactions are effectively eating H1 headline figures (last 12 months) the lunch of the traditional syndicated bank market. Large number of LPs currently prefer senior debt focussed funds as they avoid the eal ount natural trap to overleverage at this point in the cycle. From a borrowers’ perspective, the reality is that from a pricing, leverage est o urope eal ount and documentation perspective the direct lending market is as attractive as it has been in recent years in Europe. Undoubtedly, eal ount
Alternative Lender Deal Tracker H1 2019 Data Introduction 2019 H1 Tracker Alternative Deal Lender these attractive conditions will likely be subject to change in the event of further economic deterioration, and we therefore expect est o urope eal ount borrowers will continue to take advantage of this positive environment over the next 6 months.
Borrowers: Access Direct Lending to power growth Businesses rely on access to growth capital, yet due to risk appetite and stringent regulation, banks are more constrained. Bringing in alternative and flexible capital allows companies to grow, yet the market can be overwhelming with numerous complex loan options offered to borrowers. Direct Lenders can offer effective rates with little or no equity dilution of your business, enabling Floris Hovingh Pierre Masset businesses to make acquisitions, refinance bank lenders, Partner – Head of Alternative Partner – Corporate Finance consolidate the shareholder base, and grow activities. Capital Solutions Leader Tel: +44 (0) 20 7007 4754 Tel: +352 45145 2756 To read more, turn to our Direct Lending guide on page 09. Email: [email protected] Email: [email protected]
04 © Deloitte Alternative Capital Solutions Alternative Lender DealAlternative Tracker H1 2019 Introduction Data Deloitte Alternative Lender Deal Tracker Autumn 2019 | Deloitte Alternative Lender Deal Tracker H1 2019 Data Introduction
European Leveraged Finance Market: Direct Lending is growing rapidly into an asset class of its own
Direct lending has consistently been the fastest growing asset class between 2016 and 2018 with deal volumes growing at a CAGR of 29%.
CA 201 1 Leveraged Loans 12% High-Yield Bonds 6% Deal volumes n Direct Lenders 29% uropean evera e oans uropean i iel on s uropean Dire t en ers
European Leveraged Loans European High-Yield Bonds European Direct Lenders
201 €69.6 billion €53.0 billion €17.6 billion 201 €120.4 billion €93.7 billion €26.8 billion 201 €96.9 billion €63.5 billion €38.1 billion
H1 2019 €38.5 billion €29.7 billion €22.6 billion Sour e CD an Deloitte
• Deloitte gathered European capital deployment data from • The growth in the Direct Lending asset class has been driven by 50 Direct Lenders*. Direct Lender raising consistently larger funds from LPs.
• When compared with Leveraged Loan and High-Yield Bond data • With more capital to deploy Direct Lenders are now writing larger from S&P’s LCD it clearly shows that Direct Lending is the fastest tickets and expanding into areas previously dominated by the growing asset class. banks.
*The difference between the 55 lenders providing data on the number of deals and the 50 lenders providing data on deal deployment is primarily due to subordinated lenders being excluded in the deployment data set.
© Deloitte Alternative Capital Solutions 05 Alternative Lending in action: Case study 06 | Alternative Lending in action: Case study Case action: in Lending 2019 Autumn Tracker Deal | Alternative Lender Alternative Deloitte Case study action: in Lending Alternative © Deloitte Alternative Capital Solutions Alternative Lending in action: Case study 07 © Deloitte Alternative Capital Solutions signifi cantly over a shortsignifi period of time and that its ect this,nancing “The grown had should company refl fi from a start-up over a short period and I wanted a debt ectedfacility that in terms which of both refl quantum exibility.” fl and PIB’srapid and relentless growth, both organically and via M&A, naturally lent itself to a debt structure criteria acquisition exible fl and favourable including with the ability to debt fund a robust pipeline of opportunities. In addition, it was important to have a group of supportive lenders with whom PIB could build a close strategic relationship and who would be able cantly expandto signifi the amount of capital made available to the company over a sustained period of time. Based on this, the Deloitte team presented a summary of the bank and direct lending markets to the PIB team, gave them insights into the markets and discussed the options available. Deloitte Alternative Lender| Alternative Deal Tracker Autumn 2019 Lending in action: Case study
Ryan appointed Deloitte’s Debt & Capital Advisory & Capital Debt Deloitte’s Ryan appointed explore to 2019 in advisor company’s the as team company’s the expand and nance refi to options the facilities... debt existing Ryan, along with the other founding members of PIB and nancial the Carlyle sponsor, saw an Group as fi opportunity to create a market leading independent ed specialistdiversifi insurance intermediary group businessesof achieved – through hiring outstanding individuals drive to organic growth, acquiring and very with businesses specialist integrating focused great leadership, and putting collaboration with colleagues across PIB, as well as their insurer partners, at the core of everything they do. Ryan appointed Deloitte’s Debt & Capital Advisory team as the company’s advisor to explore in 2019 nance and expandthe options the company’s to refi existing debt facilities, seeking a structure that was appropriate for the business and its future aspirations. Despite having raised debt from bank lenders in 2017, Ryan company’s the that felt expansion, rapid including acquisitions,18 meant that the company had matured Launched in 2015, PIB Group (PIB) has grown rapidly both organically organically both rapidly grown has (PIB) Group PIB 2015, in Launched insurance UK’s the leading of one become to acquisition through and Ryan discusses CFO, Brown, £100m. of excess in advisors withrevenue Direct Lenders. of advantages the Direct lenders support PIB΄s success PIB΄s support lenders Direct Ryan Brown CFO – PIB Group Limited Deloitte Alternative Lender Deal Tracker Autumn 2019 | Alternative Lending in action: Case study
Ryan described his view of the direct market as being one which When asked what advice he would give to another investor or is massively diverse, “Direct lenders are different from the banks company considering their finance options Ryan recommended, but there can be just as big differences between the direct lenders “By hiring an advisor you will save yourself significant interest costs themselves… Deloitte’s knowledge, understanding of and experience and secure terms which will far outweigh the associated advisory with direct lenders allowed our business to identify those parties fees you will pay. The market changes so quickly, that it is invaluable that met our key criteria in a lending market where we had no having advice from a specialised advisor like Deloitte who is in the previous experience.” market on a daily basis comparing transactions and who has a team with the breadth to support you through the entire transaction.” During the debt raise process that followed, Ryan noted that the Alternative Lending in action: Case study in Alternative Lending standout difference between the direct lenders and the banks approached during the transaction was that the direct lenders PIB Group Limited “simply have more available capital and a greater appetite and PIB’s story began in 2015 as a start-up insurance advisory desire to deploy it… our experience highlighted that funds are business with a core of industry experts. Having secured the generally willing to write bigger cheques with greater flexibility backing of the Carlyle Group, PIB pursued a rapid expansion tailored to our particular needs.” growth strategy through organically building expertise and making acquisitions. The process continued with the Deloitte Debt & Capital Advisory team taking much of the heavy lifting in terms of negotiation and Today, PIB is a market-leading specialist and diversified documentation off the management team as well as working insurance intermediary and advisor with expertise across closely with the due diligence and legal teams to ensure that the both the retail and wholesale insurance markets and transaction proceeded efficiently. Ryan noted that, “our counsel covering the breadth of the UK, Ireland and Channel Islands worked hand in glove with the Deloitte team and this made a huge with a network of 40 offices. difference with the documentation process and the terms which we were able to negotiate.”
08 © Deloitte Alternative Capital Solutions Alternative Lending in action: Case study 09
out of (minority) shareholders ‑ | Alternative Lending in action: Case study © Deloitte Alternative Capital Solutions Increase leverage for acquisitions/ dividends Enable an exit of bank lenders Reduce equity contribution and enable more flexible structures Enable growth of private companies Enable growth opportunities Enable buy Enable a liquidity event with less/no cash equity Advantages
Deloitte Alternative Lender Deal Tracker Autumn 2019
on acquisitions on ‑ Raising junior HoldCo debt To refinanceTo bank lenders in structures over-levered Special dividend to shareholders Consolidation of shareholder base Growth capital bolt Corporates making transformational/ making Corporates Private Equity acquisitions
7 6 5 4 3 2 1 When to use Alternative Debt? use to When Situations Alternative lending in action: This time it's diff erent 10 This time diff it’s erent action: in Lending Alternative diff it's erent time This action: in Lending 2019 Autumn Tracker Deal |Alternative Lender Alternative Deloitte © Deloitte Alternative Capital Solutions Alternative lendingAlternative different in This action: time it's Deloitte Alternative Lender Deal Tracker Autumn 2019| Alternative Lending in action: This time it's different
Risk, Reward and the Credit Cycle: This time it’s different
Our hypothesis of that relationship is an important its debt. Furthermore, increasingly large Regular readers of the Deloitte Alternative consideration for participants with long- and flexible basket provisions may allow Lender Deal Tracker will appreciate term commitments to the market. This a sponsor to layer in additional debt how rapidly the European private debt is reflected in that fact that the original ranking alongside the existing lender. markets have grown recently, fuelled by deal team will probably stay involved Non-comprehensive security packages may quantitative easing, investor demand for throughout the lifecycle of an investment, even allow additional debt to prime the higher-yielding paper, and market share even though some lenders are beginning existing lender by re-gearing unrestricted gains at the expense of banks’ leveraged to add specialist turnaround and workout subsidiaries, or by using unsecured finance desks. experts to their portfolio teams. property, IP, stock or receivables as collateral for new money. Lending appetite in the direct lending Sponsor-friendly debt documentation. market remains high, despite increasing Many commentators have remarked on the What can lenders do? concerns about the length of the current dilution of standard creditor protections Strictly speaking, many newer facility credit cycle and the terms on which private in the syndicated TLB market, where most documents fail to provide lenders with debt is currently being deployed. We have deals are now cov-lite and only the RCF meaningful protections prior to a payment been considering how the current cycle will benefits from a springing covenant. In the default, although information rights remain play out, and have concluded that evolving direct lending market, it is still common very important and should be explored deal terms and changing participants to find a leverage covenant, and capital immediately. However, we believe lenders mean that the next wave of restructurings intensive businesses may also bear a capex will look beyond the letter of the contract will be very different to the last downturn. covenant. However, covenant headroom and seek to leverage their sponsor can be huge due to EBITDA add-backs and relationships by taking a more collaborative Why is this? flexible definitions, which – combined with approach, thereby improving the lender’s Bilateral relationship between sponsor watered-down default clauses – means that recovery prospects whilst protecting the and lender. The last downturn in the the triggers available for a lender to take sponsor relationship if possible. leveraged loan market in 2008-10 featured action are increasingly late. contentious multi-bank workouts, More recently we have seen larger significant levels of secondary debt trading Sponsors have far more options. debt funds focus more carefully on and protracted intercreditor discussions The absence of early triggers noted above legal protections when negotiating between senior, second lien and mezzanine means that a lender may only be notified documentation. Some debt funds are also lenders. In today’s private debt deals, of problems so late that its own room for pushing to take the agency role to increase there is a closer relationship between a manoeuvre may be curtailed. This is a their control of the situation, and in sponsor and a single lender; negotiations potential source of frustration, particularly response borrowers are trying to minimise can proceed more efficiently and take where a facility agreement may prevent the risk of future disputes by ensuring that place in a context where protection a lender from selling or sub-participating key lenders do not become loan agents.
© Deloitte Alternative Capital Solutions 11 Deloitte Alternative Lender Deal Tracker Spring 2019 | Alternative Lending in action: This time it's different
• Strategic restructuring expertise in In the current cycle, sponsors and direct assessing the available options on a lenders appear more willing to work consensual or non-consensual basis; • Access to specialist expertise in pensions together to resolve a shared problem. or tax;
How can sponsors and lenders work • Concentration risk is also a factor: • Advice which is objective and together? unlike banks, many funds can invest independent of capital in situations In the last cycle, financial advisers were from 5% to 8% of their lending capacity where there has been a loss of trust extensively used to coordinate multiple into a single credit, which means that between management, sponsor and stakeholders through a work-out process, preservation of capital is key. In practice lender; produce a review of the latest business this means (i) direct lenders are more plan to support banks’ credit committee likely to support a sponsor-led deal; in • Implementation support to ensure discussions, and to provide individual the interests of protecting value; and (ii) delivery of the desired outcome stakeholder groups with negotiation direct lenders are less likely to sell their including, where necessary, accelerated support. Those stakeholder groups and debt in the secondary market because M&A capabilities or provision of an relationships subsequently fragmented as they will be more sensitive to near-term appointment-taker to deliver a prepack debt traded to distressed investors and crystallisation of losses. transaction. participants exited the market, leading Alternative lending in action: This time it's time action: This in different Alternative lending to long, fraught and expensive workout This lending landscape has led to a shift in This time it really will be different. processes. the demands made on external advisers. In the future we believe there will be For further information please contact: In the current cycle, sponsors and direct more situations where a single adviser is lenders appear more willing to work involved, at significantly lower cost than together to resolve a shared problem. traditional multilateral, adviser-dominated There are a number of reasons for this: work out processes, who can provide:
• Direct lenders are generally willing to • Hands-on help for management in look at amending and extending terms producing (rather than reviewing) a alongside re-pricing to reflect increased robust business plan, supported by Jarek Golebiowski risk, particularly as many funds have specialist sector expertise; Tel: +44 (0) 20 7007 2558 Email: [email protected] a 10% allocation to provide additional liquidity into existing deals. • Functional expertise in working capital management to support the CFO and • Direct lenders rarely look to take maximise the available liquidity runway in ownership of assets; we have only seen situations where distress is imminent; a handful of deals where lenders have taken the equity, and these cases are • Operational and analytical insight to help restricted to situations where sponsors identify and deliver the actions required Ben Davies have been unwilling or unable to invest to restore the desired earnings trajectory Tel: +44 (0) 20 7303 5374 new money. (‘course correction’); Email: [email protected]
12 © Deloitte Alternative Capital Solutions Alternative Lender DealAlternative Tracker H1 2019 Deals Deloitte Alternative Lender Deal Tracker Autumn 2019 | Alternative Lender Deal Tracker H1 2019 Deals
Alternative Lender Deal Tracker H1 2019 Deals
© Deloitte Alternative Capital Solutions 13 Alternative Lender Deal Tracker H1 2019 Deals 14 Deals done each surve participant Last 12 months Last participant surve each done Deals Deals survey. the in included are deals European and UK nly Lenders. Alternative leading 55 covers Currently Alternative Lender Deal Tracker covers 55 lenders and areported 1937 deals Tracker Deal Lender now Alternative The 2019 Autumn Tracker Deal Lender Alternative Deloitte © Deloitte Alternative Capital Solutions in t e last ont s last t e in eals ore or o plete parti ipants Surve | Alternative Lender Deal Tracker H1 2019 Deals Tracker Deal Lender | Alternative in t e last ont s last t e in o plete or ore eals parti ipants Surve est o est urope retrospe tivel up ate or an ne parti ipants retrospe tivel is ra er Deal en er Alternative t e in Data ran e 19 120 otal eals o plete o plete o plete uro eals 2 eals t er uropean t er er an
Alternative Lender Deal Tracker H1 2019 Deals 15 UK Europe Rest of © Deloitte Alternative Capital Solutions | Alternative Lender Deal TrackerDeals 2019 H1 usiness n rastru ture ro essional Servi es ele o uni ations e ia e nolo Servi es inan ial ealt are i e S ien es eisure anu a turin etail oo sConsu er Capital u an t er In the rest of Europe there are 5 main industries: Business, Infrastructure Professional & Services, TMT, Manufacturing, Healthcare & Life Sciences Goods. Consumer and Total deals across industries Last months 12 Within the UK the Business,Infrastructure & ServicesProfessional industry been the has Alternative of user dominant with Lending followed26% by TMT with 17%. Deloitte Alternative Lender Deal Tracker Autumn 2019 t er uropean Total Deals ran e t er er an uropean er an ran e
Total deals across urope In the last quarters 26 (7321937 UK and other1205 European) deals are recorded in Europe
diversifying geographies Direct Lenders increasingly Alternative Lender Deal Tracker H1 2019 Deals Direct Lending deals Lending Direct still the key driver activity forM&A 16 Unitranche is the dominant structure, with 59% of UK transactions and 49% of European transactions. Subordinate structures represent only only represent 17% structures of the transactions. Subordinate transactions. European of 49% and transactions UK of 59% with structure, dominant the is Unitranche 12Structures Last months 76 deals did not involve a private equity sponsor. equity aprivate involve not did 76 deals 12 months, last the in deals 401 the f out. abuy fund to used being deals Euro and UK the of 64% with related, M&A are deals the of majority The 12 months Last purpose Deal *For the purpose of the deal tracker, we classify senior only deals with pricing L + 650bps or above as unitranche. Pricing below this hurdle is classified as senior debt. senior as classified is hurdle this below Pricing unitranche. as above or L+650bps pricing with deals only senior classify we tracker, deal the of purpose the *For 2019 Autumn Tracker Deal Lender Alternative Deloitte t er e anine lien Se on nitran e Senior apital ro t Refinancing re ap Divi en A on olt © Deloitte Alternative Capital Solutions UK UK | Alternative Lender Deal Tracker H1 2019 Deals Tracker Deal Lender | Alternative o t e transa tions are stru ture as stru ture are transa tions t e o a first lien structure (Senior/Unitranche) structure lien a first involve ininvolve A o transa tions first lien first
Europe Europe Rest of Rest of Rest Alternative Lender Deal Tracker H1 2019 Deals 17 S it erlan Spain S e en olan © Deloitte Alternative Capital Solutions or a tal | Alternative Lender Deal Tracker Deals 2019 H1 inlan relan Den ar Austria ther uropean ordics Deloitte Alternative Lender Deal Tracker Autumn 2019 et erlan s u e our er an
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Cumulative number of deals per country The number of deals is increasing at different rates in variousEuropean countries. The graphs below show countries which 2019 H1 as of have completed 5 or more deals. deal volume for Direct Lenders in Europe in Lenders Direct for volume deal The UK still leading as the main source of of source main the as leading still UK The Benelu Largest geographic for markets Alternative Lenders Deloitte Alternative Lender Deal Tracker Autumn 2019 | Alternative Lender Deal Tracker H1 2019 Deals
Direct Lending is growing in the main European markets
Comparison of deals for the last three years on a LTM basis for selected European countries On average, over time the number of deals is increasing with positive CAGR between 2016 and 2019 in all of the countries shown below.
France erman
Alternative Lender Deal Tracker H1 2019 Deals 2019 H1 Tracker Alternative Deal Lender
etherlands Spain tal
18 © Deloitte Alternative Capital Solutions Alternative Lender Deal Tracker H1 2019 Deals 19 Jan-19 Sep-18 Sep-18 Apr-19 Apr-19 Apr-19 Apr-19 Mar-19 Mar-19 Mar-19 Mar-19 Mar-19 Feb-19 Jan-19 Jan-19 Dec-18 Dec-18 Nov-18 Oct-18 Sep-18 Sep-18 Sep-18 Sep-18 Sep-18 Sep-18 Sep-18 Jun-19 Jun-19 Jun-19 Jun-19 Jun-19 Jun-19 May-19 Apr-19 Apr-19 Apr-19 Date – – – Sponsor © Deloitte Alternative Capital Solutions | Alternative Lender Deal Tracker Deals 2019 H1 Ares HPS Apera, Idinvest Ares Apollo TPG Bluebay Permira Debt Managers Bluebay Ares Apollo Permira Debt Managers Ares Ares Bluebay, Idinvest, Barings Tikehau Capital Permira Debt Managers Ardian, EQT Barings, ICG Barings Barings, Bluebay, Bridgepoint Credit, Idinvest HPS Permira Debt Managers Idinvest, LGT European Capital Idinvest,Barings Park Square, SMBC Bluebay Ares Ares Ares Ares Tikehau Capital Permira Debt Managers, Tikehau Capital Bluebay Ares Tikehau Capital Lenders 800 700 600 500 400 300 Deloitte Alternative Lender Deal Tracker Autumn 2019 200 100 Unitranche in €m in Unitranche Sweden UK France Denmark UK France UK UK Germany UK UK UK Netherlands UK France France UK Germany Norway Germany France UK Netherlands France France UK Italy France Netherlands Lithuania UK Spain France France Germany France Country
Cherry FNZ Chaussures Besson Conscia Arlington Kyriba Outcomes First ICS Transporeon Degrees Six DMC Pharma Sterling TAF Daisy HTL Coyote Deltatre Medifox Mobility Link Ipsen HTL HSS Hire Getronics Remade in France Technicis OAG Goose Golden Primonial Synthon Baltic Classifieds Group Doobies Mecalux Revima Hana IRS Astek Borrower Source: LCD, an offering of S&P Global Market Intelligence, Deloitte research and other publicly available sources.
been completed? Which landmark unitranche deals have Selected Landmark Unitranche Deals (>€90m) Direct Lending fundraising Direct Lending fundraising Lending Direct 20 10 1 by re Dire 2019 Autumn Tracker Deal Lender Alternative Deloitte Global 30
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Select largest funds with final closings in 2018 in closings final with funds largest Select • • • • • • • • • • Select largest funds with final closing in 2019 in closing final with funds largest Select • • • • • • • • • • EQT Mid-Market Credit Fund II €1,800m II Fund Credit Mid-Market EQT $2,120m Fund Spectrum Yield Oak White $3,000m III Fund Credit Senior Kayne €6,500m IV Europe Capital Ares Golub Capital Partners II $1,860m II Partners Capital Golub Twin Brook Direct Lending Fund III $2,750m III Fund Lending Direct Twin Brook €2,750m III DLI Gordon Angelo $3,000m Fund Lending Direct Senior Ares €5,500m III Fund Lending Direct European Alcentra €6,000m III Fund Lending Direct Bluebay
(North America) (North (Europe) (North America) (North (North America) (North
(Europe)
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(Europe) Direct Lending fundraising
21 1 1 1 | Direct Lending fundraising 2 © Deloitte Alternative Capital Solutions North American performance is the strongest on record. European performance was the strongest however, since 2017; Europe is looking to have a very with strong several 2019, Q3 significant funds closing. In Europe, volumes fell by c. 25%, with volumes in North America seeing a steeper 30% fall, though nonetheless North overall. Europe outpace to continues American fundraising North American funds represent around half of those in market by number funds 100 (c. targeting c. $40 billion) but European funds represent the plurality by capital sought 65 (c. funds targeting c. $45 billion). – – – – Strong investor interest in separately managed accounts continues, meaning that not all capital committed to the direct lending space is easily captured. 2018 saw a step2018 down in fundraising volumes in both Europe and North America compared to the record year in 2017. c. billion $95 remain in the market as of August 2019. H1 2019 saw strong 2019 H1 fundraising in both Europe and North America, with both regions seeing volume ahead of 2018. – – c. 200 Direct Lending funds seeking aggregate commitments of – – • • • • • Key takeaways • • • Deloitte Alternative Lender Deal Tracker Autumn 2019 1 n n 1 n n u er o un s o u er u er o un s o u er n n n n n n re in re in Cre it Suisse rivate un roup ar et no le e orth America Direct Lending fundraising uarter urope Direct Lending fundraising uarter Direct Lending fundraising De 22 | Direct Lending fundraising 2019 Lending Autumn Tracker Deal | Direct Lender Alternative Deloitte Senior Direct Lending fund raising focused on the European market European the on focused raising fund Lending Direct Senior managers? Lending Direct which by Senior: How much funds have been raised un raisin roun ite orse © Deloitte Alternative Capital Solutions invest un si e illion C lue a S un Ares i e au Avenue De invest Hayfin Cre it Solutions ive Arro s un invest i e au rivate De t roventus De Al entra Cre it artesia ar ert uropean ar ert ro t Capital ro t rivate De t i e au Alantra C un Cap anine er ira Arte i invest Ar ian raesi ian Cap anine Arte i Cres ent lue a u ini De De Co S Cor et Ares arin s un un n us Capital i e au ain Capital ort lea ua rivio e erton De u ini Hayfin Co Al entra i e au u ini Co lue a un arin s er ira u ini Co S artesia invest i e au De Cap anine Cap anine C Arte i Arte i Dire t en in Dire t ive Arro s i e au invest Alantra Ares la o n us Capital un ro t Capital ro t uropean ar ert ar ert ar S uare Capital u ini Co De ite orse Capital Apera e erton e erton lue a i e au C un invest Al entra S an inavis a re it on en A re it on en S an inavis a rivate De t De Direct Lending fundraising 23 De De t rivate S an inavis a re it on en A Al entra invest un C i e au lue a e erton e erton Apera Capital © Deloitte Alternative Capital Solutions ite orse De Co u ini Capital ar S uare ar ar ert uropean ro t Capital un n us Capital n us la o Ares Alantra invest i e au ive Arro s ive Deloitte Alternative Lender| Direct Deal Tracker Autumn Lending 2019 fundraising Dire t en in Arte i Arte i C Cap anine Cap anine De i e au invest artesia S Co u ini u ini er ira arin s un lue a Co u ini i e au Al entra Co Hayfin u ini u ini De e erton ua rivio ort lea ain Capital ain i e au n us Capital n us un un arin s Ares Cor et S Co De u ini lue a Cres ent Arte i Cap anine raesi ian Ar ian invest Arte i er ira Cap anine un C Alantra i e au De t rivate ro t Capital ar ert uropean artesia Cre it Al entra De roventus De t rivate i e au invest un ive Arro s ive Cre it SolutionsCre it Hayfin invest De Avenue i e au Ares un S lue a C un si e illion si e un invest ite orse un raisin roun De Direct Lending fundraising De 24 | Direct Lending fundraising 2019 Lending Autumn Tracker Deal | Direct Lender Alternative Deloitte Junior/Growth Capital Direct Lending fund raising focused on the European market European the on focused raising fund Lending Direct Capital Junior/Growth managers? Lending Direct which by raised been Junior/Growth: have funds much How un raisin roun etri © Deloitte Alternative Capital Solutions un si e illion C e anine S Dut un invest ain Capital Capital our Capital De Cre it e anine artners etri un ot s il ive Arro s ot s il ive uen o Capital C Capital n i o De Cre it ain Capital un C Capital our Capital ain Capital De De ar S uare Capital un un C S Sipare De ri oa S etri avis Capital un S uen o Capital De e anine Dut un e anine artners De Capital n i o C un De Direct Lending fundraising 25 De un C © Deloitte Alternative Capital Solutions n i o Capital De artners e anine un Deloitte Alternative Lender| Direct Deal Tracker Autumn Lending 2019 fundraising Dut e anine De Capital uen o S un avis Capital avis etri S ri oa De Sipare S C un un Capital ar S uare ar De ain Capital ain Capital our C un ain Capital ain Cre it De n i o Capital C Capital uen o ot s il ive Arro s un etri artners e anine Cre it De Capital our ain Capital ain invest un Dut S e anine C un si e illion si e un etri un raisin roun De Direct Lending fundraising 26 An overview of some of the largest funds raised in the market the in raised funds largest the of some of overview An managers? Lending Direct which How much funds have been raised by 2019 Autumn Tracker Deal Lender Alternative Deloitte BlackRock EuropeanMiddleMarketPrivate DebtFundI Blackrock Global PrivateLoanFundII Barings Bain CapitalSpecialtyFinance Bain Capital ACE IV Ares Ardian PrivateDebtFundIII Ardian Apera CapitalPrivateDebtFundI Apera Capital European DirectLendingFundIII Alcentra Alteralia SCASICAVRAIF Alternative Lenders Capital FourStrategic LendingFund Capital Four BlueBay SeniorLoanFundIII BlueBay Global PrivateLoanFundI Bain CapitalDirectLending2015(Unlevered) ACE III Axa PrivateDebtFundII Direct LendingFund Alteralia SCASICAR Capital FourNordic LeverageFinanceFund BlueBay SeniorLoanFundI Alantra Bain CapitalDirectLending2015(Levered) ACE II European DirectLendingFund BlueBay DirectLendingFundII Bain CapitalMiddleMarketCredit2014 ACE I Direct LendingFund BlueBay DirectLendingFundI Bain CapitalMiddleMarketCredit2010 © Deloitte Alternative Capital Solutions | Direct Lending fundraising Lending | Direct Q2 17 17Q3 Q4 16 Q2 18 15Q3 Q1 19 Q3 19 Q1 18 Date Q3 15Q3 Q1 19 Q2 16 Q4 15 Q2 16 Q2 10 Q1 17 15Q3 Q4 13 Q4 17Q3 Q1 15 13Q3 14 Q4 Q4 15 Q4 13 Q4 07 Q4 12 Q4 Q2 13 Q2 10 Size (m) w/o leverage Size €602 €602 $1,300 €1,406 €6,500 €2,026 €750 €5,500 €164 €135 €135 €6,000 $777 €56 €2,536 €1,529 €2,100 €139 €200 €200 €2,900 €433 €911 €850 €2,100 €1,554 €1,554 €311 €278 €810 €810 €1,017 Investment Strategy Senior Junior and Senior Senior Senior Junior and Senior Junior and Senior Senior andJunior Senior Junior Junior and Senior Senior and Junior and Senior Junior Junior and Senior Junior and Senior Junior and Senior Senior Junior Senior Junior Junior and Senior Junior and Senior Senior andJunior Junior Senior Junior and Senior Senior and Junior Junior and Senior Junior Europe Global Global Europe Europe Europe Europe Europe Europe Europe Geography Global Global Europe Europe Europe Europe Europe Europe Global Europe Europe Europe Global Europe Europe Europe Global Direct Lending fundraising 27 Europe Europe Global Europe Europe Global Global Europe Europe Europe Global Europe Europe Europe Global Global Global Europe Europe Europe Europe Europe Europe Europe Europe Global Europe Europe Europe Europe Geography Europe Global Europe Europe Europe Global Europe Europe Europe Europe | Direct Lending fundraising © Deloitte Alternative Capital Solutions Senior and Junior Junior Senior and Junior Senior Junior Senior and Junior Junior Senior Senior Junior Junior Senior Junior Senior Junior Senior Senior Senior Senior Senior and Junior Junior Senior Senior Junior Junior Senior Junior Senior and Junior Senior Senior and Junior Senior Senior Senior and Junior Junior Junior Investment Strategy Investment €203 $2,100 €325 €1,100 €2,500 €700 $4,400 €1,700 €345 $4,000 $4,000 €3,100 €3,000 €70 €640 €530 $1,964 €122 €2,000 $1,500 $6,600 €3,000 €413 €60 €695 €1,800 $6,500 €215 €3,500 €750 $4,500 €5,200 €850 €122 €815 Size leverage w/o (m) Deloitte Alternative Lender Deal Tracker Autumn 2019 Q1 05Q1 Q1 08Q1 Q3 07 Q2 10 10 Q2 13 Q1 Q3 12 Q3 12 Q1 13 Q1 13 Q2 Q3 15 Q3 15 Q1 12 12 Q1 13 Q2 Q1 15 Q3 15 09Q1 Q2 16 Q2 Q4 15 15 Q1 14 Q1 19 Q2 Q4 16 Q3 15 Q1 18 Q1 13 Q1 14 Q1 Q3 17 Q3 17 Q4 17 Q4 18 Q4 16 Q3 18 17 Q1 13 Q1 Q1 18 Q1 Q4 17 Date 18 Q1 Capzanine 1 Mezzanine Partners Fund I Capzanine 2 Highbridge Speciality Loan Fund II ICG Europe Fund V Capzanine 3 Mezzanine Partners Fund II Senior Debt Partners I Artemid Senior Loan Capital Opportunities Fund I Highbridge Speciality Loan Fund III ICG Europe Fund VI Artemid CA EMZ 6 Capzanine EQT Mid Market Lending European Senior Debt Fund Harbert European Growth Capital Fund I Direct Lending Fund I H.I.G. Bayside Loan Opportunity Fund V (Europe) Mezzanine Partners Fund III Senior Debt Partners II Artemid Senior Loan 2 Artemid Senior Dutch Mezzanine Fund I EMZ 7 ICG Senior Debt Partners III HPS Investment Partners Investment HPS Speciality Loan Fund 2016 HIG H.I.G. Whitehorse Loan Fund III Harbert European Growth Capital Fund II SCSp Hayfin Direct Lending Fund II Harbert European Growth Capital EQT Mid Market Credit Fund II GSO Capital Opportunities Fund II EQT Dutch Mezzanine Fund II EMZ EMZ 8 Dutch Mezzanine Alternative Lenders Alternative Capzanine 4 Private Debt Direct Lending fundraising 28 2019 Autumn Tracker Deal Lender Alternative Deloitte MCP III MCP Metric II CEPD Capital European LGT III”) L.P. (“KKRLP III Partners Lending KKR KKR IV Opportunities Credit Kartesia Kartesia VII Fund Indigo Capital III Fund Credit European Capital Incus Incus Capital Idinvest SeniorDebt5 Alternative Lenders Muzinich Pan-European PrivateDebtFund Muzinich & Co. II Partners Mezzanine Partners Mezzanine MCP II MCP Fund Debt Private Europe Partners Lending Fund III Opportunities Credit Kartesia VI Fund II Fund Credit Iberia Capital Incus Idinvest PrivateDebtIV Muzinich FrenchPrivate DebtFund Mezzanine PartnersI Idinvest MCP I MCP Debt SME UK II Partners Lending Fund V Fund I Fund Credit Iberia Capital Incus Idinvest DetteSenior4 Muzinich IberianPrivate DebtFund Fund Lending Partners I Partners Lending Fund IV Fund Idinvest DetteSenior3 Fund III Fund Idinvest DetteSenior2 Idinvest PrivateDebtIII Idinvest PrivateValueEuropeII Idinvest DetteSenior Idinvest PrivateValueEurope Idinvest PrivateDebt © Deloitte Alternative Capital Solutions | Direct Lending fundraising Lending | Direct Q1 17 19Q3 Q4 18 Q4 17 18 Q4 Q2 18 Q3 19 Date Q1 19 18Q3 Q2 14 Q1 15 Q1 16 Q1 15 14Q3 16Q3 Q2 18 Q3 17Q3 Q1 14 Q1 13 14Q3 Q2 15 07 Q3 12 Q4 Q4 16 Q1 17 Q4 12 Q4 03 Q3 Q3 15 Q3 00 Q3 Q3 14 Q1 14 Q4 13 Q1 13 Q2 12 Q3 07 Size (m) w/o leverage Size €860 €860 €1,350 $1,498 €870 €300 €500 €250 € 707 €65 €475 €475 €474 $850 €508 €320 €270 €715 € 153 €65 €225 €225 €100 $1,336 €220 €128 €300 € 104 $460 $460 €200 €530 €100 €400 €400 €50 €280 €65 €290 Investment Strategy Special Situations Situations Special Junior and Senior Senior Senior andJunior Junior Junior and Senior Senior Senior and Junior Junior and Senior Junior Special Situations Situations Special Junior and Senior Senior andJunior Senior andJunior Junior Junior and Senior Senior andJunior Senior Junior Special Situations Situations Special Junior and Senior Senior andJunior Junior Junior and Senior Senior Senior and Junior Junior and Senior Senior and Junior Junior and Senior Junior Senior Junior Senior Senior andJunior Junior Senior Junior Senior andJunior Europe Europe Global Europe Europe Europe Europe Europe Europe Geography Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Global Europe Europe Europe Europe Global Europe Europe Europe Europe Europe Europe Europe Europe Europe Direct Lending fundraising 29 Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Geography Europe Europe Global Europe Europe Europe Europe Europe Europe Europe Europe Global Europe Europe | Direct Lending fundraising © Deloitte Alternative Capital Solutions Senior Senior Senior and Junior Senior Senior and Junior Senior and Junior Senior and Junior Senior Senior Senior and Junior Senior and Junior Senior Senior and Junior Senior and Junior Junior Senior Senior and Junior Junior Junior Senior and Junior Senior and Junior Junior Senior and Junior Senior & Junior Junior Senior Junior Senior and Junior Senior and Junior Senior and Junior Junior Senior Investment Strategy Investment €355 €134 €230 €19 €290 €290 €610 €615 €1,140 €216 €205 €2,740 €800 €835 €415 €212 € 250 €157 €1,185 €942 €1,700 €1,692 €1,300 €655 €100 €350 CHF137 €2,200 € 268 $1,400 €200 €502 Size leverage w/o (m) Deloitte Alternative Lender Deal Tracker Autumn 2019 Q4 13 Q4 13 Q3 14 Q3 14 Q3 15 Q3 15 Q3 15 Q3 15 Q3 16 Q2 17 Q2 Q4 16 Q3 09 Q4 17 Q1 19 Q1 Q3 15 11 Q2 14 Q2 18 Q1 Q4 15 Q3 14 Q1 16 Q4 16 19 Q2 17 Q1 19 Q1 Q1 19 Q1 17 Q2 17 Q1 Q4 14 18 Q1 Date Q4 16 14 Q1 Q4 17 Q4 18 Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Fund 7 European Mid-Market Debt Fund European Mid-Market Debt Proventus Capital Partners I Fund 8 Pemberton European Mid-Market Debt Fund II Pemberton European Mid-Market Permira Credit Solutions II Proventus Capital Partners II/IIB Five Arrows Credit Solutions Fund 9 Muzinich UK Private Debt Fund Muzinich UK Oquendo II III LP Park Square Capital Partners Fund 10 Tavis Capital Swiss SME Credit Fund I Tikehau Siparex Siparex Skandinaviska Kreditfonden AB Scandinavian Credit Fund I AB Rothschild/Five Arrows Five Arrows Direct Lending Proventus Proventus Capital Partners III Pricoa Pricoa Capital Partners V Permira Permira Credit Solutions III Pemberton Credit Opportunities Fund Pemberton European Strategic Oquendo III Park Square Capital IV SCSp Park Square Capital Partners Northleaf Northleaf Private Credit Oquendo Capital Alternative Lenders Alternative Private Debt Fund Muzinich Italian Recent Moves 30 between the funds, albeit slightly down on the previous year. previous the on down slightly albeit funds, the between movement been still has there Senior-level, and Mid the at change net no been has there year, whilst this of half first the in 2that Figure H1 2018 of from from H1 2019, of and see data can we Comparing Hiring Trends by Seniority experience). industry of (<6 years Junior-level the at been have additions net All 6months. last the over personnel market in a5% rise marking 558, to 533 from increased has (IP’s) professionals investment of number total the that 1shows Figure year-on-year. volume in increase an showing still strong, 2017, 2018, in remained versus has raising flow deal fund in reduction aslight Despite Europe. in expand to continued has market Lending Direct year, the last from on Following Market Headcount Lending Direct – Key and statistics recent moves Professionals Lending Direct 2019 Autumn Tracker Deal Lender Alternative Deloitte When analysing seniority, junior-level IPs are those with less than 6 years’ relevant experience, mid-level constitutes 6-10 years’ experience, and senior is those with more than 10 years’ experience. 10 years’ than more with those is senior and experience, 6-10 years’ constitutes mid-level experience, relevant 6years’ than less with those are IPs junior-level seniority, private analysing When corporate the in is activity main whose teams excluded also have We equity. excluded have We majority or Capital). minority in is now Crescent Square, Park as investment (such their of funds much placement that market. Lending basis the on /Direct ICG, at teams Mezzanine Equity combined 35 c. at headcounts team Mezzanine/Minority the investment total the included have we analysis this of purposes the For Notes between 4 2 1 and 2 2 1 and 2 1 4 between seniority of levels different across moves net comparing 1. Graph Figure Total headcount © Deloitte Alternative Capital Solutions 4 2 1 4 net oves unior evel net oves evel i net oves Senior evel | Recent Moves Moves | Recent Total headcount 2 2 1 2 competitor Private Debt funds (43%) and Investment Banking (43%). (43%). Banking Investment (43%) and funds Debt Private competitor between shared is hiring of source leading the Mid-level, the At (26%). (47%) University and Banking Investment from come have hires Junior of majority year, the this far so that 3shows Figure Source of Hires – Breakdown their capabilities. execution bolstering by this to responding are Funds market. competitive increasingly an in deployed be to capital of plenty is there funds, sizeable very closed recently having managers major several With 2018. H1 in hires) total of (53% 19 hires 36 the of with compared Junior-level the at H1 in 2019 made hires) occurred total of (76% hires 50 the of 38 hiring. junior towards focus in shift aclear witnessed We have levels of seniority from the first half (H1) of 2018 and 2019 and 2018 of (H1) half first the from seniority of levels different across departures and hires total the comparing Graph 2. Figure unior H1 2 1 H1 i
Senior unior H1 2 1 H1 i Senior
Recent Moves 31 | Recent Moves
© Deloitte Alternative Capital Solutions Andrew Perry, Perry, Andrew Managing Director [email protected] Bruce Lock Bruce Managing Director [email protected] Joost De Pauw, Principal, joins from ING Alberto Ceron, Associate, joins from Partners Group Matthew Kenny, Director, left for Start-up Arrows Five from Professional, joins Credit Senior Sealy, John Andrew Tully, Managing Director, joins from Santander UK left Cambon Partners for Investment Pitoun, Manager, Benjamin Annabel Downs, Executive Director, joins from GS Trading Desk Jonathan Ferguson, Head of Origination, left for TBC Charmaine Chow, Executive Director, left for TBC Carina Spitzkopf, Director, joins from UBS Kevin Roche, Director, joins from Allied Irish Bank Emmanuel Bresson, Partner, left for TBC Lili Jones, Associate, joins from Ares Management Nick Gainsley, Principal, left for OneVentures Boris Harmsen, Head of Benelux, joins from IKB Reibel, Associate,Philip left Start-up for Tim Ellwood, Vice President, joins from Bank of Ireland CPPIB from joins Fradette, Manager, Mathieu Dhruwil Parikh, Vice President, joins from Och-Ziff
Deloitte Alternative Lender Deal Tracker Autumn 2019
Bain CapitalBain Capital Beechbrook Capital Cordet Partners CVCCredit Partners ArrowsFive ESSGGoldman ESSGGoldman ESSGGoldman Hermes Investment Management Hermes Investment Management InvestmentHPS Partners ICG Kreos Capital AssetPemberton Management CapitalProventus Partners InvestmentsPSP CapitalTikehau Capital TPG Ares Management
Recent NotableDirect LendingMoves
0 niversit Senior evel Senior ut o t e ar et ale e ale rivate De t un i evel i rivate uit un A visor unior evel unior De t De t nvest ent an in
Bruce and Andrew are co-Managing Partners of Paragon Search Partners, Paragon Search Partners a London-headquartered search firm focused on the global credit markets, leveraged and acquisition finance, investment banking and private equity. Office telephone number +44 (0) 20 7717 5000
1 20 2 Figure 3 Charts displaying the source of hires into the DL market in H1 2019 at different levels of seniority Figure 4 (below) compares hiring by so gender in 2019 withfar, previous years. Over the last 6 months, of 26% hires made have been female. There has been a concerted effort made by firms in order to improve gender diversity, as a result we have seen more than a 50% increase of female hires in the DL market when comparing with 2017. The majority of Senior hires have come from competitor opposed to as Investment Banking (80%) Private Debt funds, which account for just 20%. This is a departure from the trend we have seen in previous reports, as historically the majority of Senior hires have been sourced from competitor Private Debt funds. Figure 4 Chart comparing hires by gender across 2 1 2 17, and H1of 2 1 Insights into the European Alternative Lending market 32 | Insights into the European Alternative Lending market Lending Alternative European the 2019 into Autumn Tracker Deal | Insights Lender Alternative Deloitte Alternative Lending market Lending Alternative Insights into the European © Deloitte Alternative Capital Solutions Insights into the European Alternative Lending market 33 Speed of execution effective ‑ simplicity
Cost
stop ‑ Key solution Lenders One benefits of Alternative
Scale © Deloitte Alternative Capital Solutions Funds are not able to provide clearing facilities ancillaries. and Funds will target a higher yield for the increased flexibility provided. Greater • • flexibility structural However • • | Insights into the European Alternative Lending market bank institutions with different institutions withbank different ‑ Access to non amortising, bullet structures. Ability to provide more structural flexibility(covenants, headroom, cash sweep, dividends, portability, etc.). Access to debt across the capital structure via senior, second lien, equity. quasi mezzanine and unitranche, Increased speed of execution, short credit processes and access to decision makers. leveraged for sizes hold larger Potentially loans (€30m up to €300m). Deal teams of funds will continue to monitor the asset over the life of the loan. • • • • • • • • • • • • Key differences to bank lenders? Deloitte Alternative Lender Deal Tracker Autumn 2019
5 year investment period and a 10 year investment professionals. Most of the ‑
‑ Over the last three years a significant number of new funds has been raised in Europe. Increased supply of Alternative Lender capital has helped to increase the flexibility and optionality for borrowers. funds have structures comparable to those seen in the private equity industry with a 3 life with extensions options. The limited partners in the debt funds are typically insurance, pension, private wealth, banks or sovereign wealth funds. These institutions range from larger asset diversifyingmanagers alternative into debt tosmaller funds newly set up by ex Alternative Lenders consist of a wide range of non of range a wide of consist Alternative Lenders Who are the Alternative Lenders and why are they becoming more relevant?
strategies including private debt, mezzanine, opportunity mezzanine, debt, private distressed debt. and including strategies Alternative guide Lender ‘101’ Insights into the European Alternative Lending market 34 • base investor Key of the characteristics credit of a Pansupportive documentation template by the Loan Market in (LMA) 2015 early Association is of Euromajority PPs are currently unlisted. The introduction of a standardised up significantly. amendmentAfter the thein insurance legislation in July 2013, the Since inception its in July 2012, the Euro Private Placement (Euro PP) volumes picked a glance at corporates mid‑cap for PP Euro Euro Private Placement ‘101’ guide 2019 Autumn Tracker Deal Lender Alternative Deloitte • • • • • and asset managers and asset funds pension insurers, French Mainly Buy andBuy Hold strategy usually sponsor 3.5x), max. leverage (net profile credit good exposure, business international European mid Target lending: © Deloitte Alternative Capital Solutions ‑ less ‑ ‑ cap size, size, cap European roll • • • • • • • • • • • PP Euro of features Main • • • • • • • • • • • to issue 8 weeks average on take PPs Euro language local Local jurisdiction, disclosure) (no financial confidentiality and transaction each for lenders of number Limited profile repayment Bullet >7 years Maturity fees upfront –No 4.5% 3% and between average on coupon Fixed facilities banking other with passu Pari €10m amount: Minimum issue No rating secured) are banks if guarantees include to Senior,Usually (possibility unsecured liquidity no bond and no trading listing, technical If listed: Loan or bond (listed or non or (listed bond or Loan | Insights into the European Alternative Lending market Lending Alternative European the into | Insights ‑ out ofout this alternative source of financing. ‑ listed) – listed)
Pros and Cons of Euro PP Euro of Cons and Pros Minimum credit profile; leverage profile; credit Minimum Minimum €10m amount Make General corporate purpose the to adapted and flexibility Covenant financial public (no Confidentiality for lenders of number limited Very funding of sources of Diversification (free repayment Bullet Long maturity repayment < 3.5x < business disclosure) each transaction disintermediation) (bank ‑ whole clause in case of early early of case in clause whole ‑ up cash flow) up
Insights into the European Alternative Lending market 35 rivate nstru ent nstru ent u li Cash flow debt products The overview on the left focuses on the debt products available for Investment Grade Sub-Investmentand companies.Grade CCC © Deloitte Alternative Capital Solutions eer to eer i iel on s Dire t en ers Cre it is Cre it A Deloitte Alternative Lender| Insights Deal Tracker Autumn into 2019 the European Alternative Lending market rivate la e ents AA Senior an oans ilateral S n i ate nvest ent ra e on s AAA
cash fl ow debt products? debt ow fl cash How do Direct Lenders compare to other other to compare Lenders Direct do How De t si e De t Insights into the European Alternative Lending market 36 | Insights into the European Alternative Lending market Lending Alternative European the 2019 into Autumn Tracker Deal | Insights Lender Alternative Deloitte raising senior risk strategies funds with lower hurdle rates. lower with funds strategies risk senior raising increasingly are Lenders However, Direct market. debt private the of part deepest the is which unitranche, vanilla’ ‘plain of strategy popular most the in involved mostly are and L+550bps margin above are which rates hurdle have Lenders Direct the of Majority equity. private by owned companies mainly to structures debt senior providing range margin 600bps to 350bps the in operate banks loan Leveraged lenders? bank How do Alternative Lenders compete with Margin 6 © Deloitte Alternative Capital Solutions an lu Alternative eals Lenders nitran e profile Risk economy and excess liquidity in the system. the in liquidity excess and economy the in improvements of a result as 3 years last the over down come has curve return risk the class asset other any to Similar capital. debt or growth 1 is a higher (real or perceived) risk associated with this investment. this with associated risk perceived) or (real a higher is diffi another or there nancial fi a result as and a fito culty restructuring nancial strategies, including: ‘Story credit’ including: ‘Story strategies, debt private yielding higher on focus funds Lending Direct Other ‘Story Credit’ – unitranche facility for a company that historically was subject subject was historically that a company for facility –unitranche Credit’ ‘Story unitran e or uniorunitran e e t Stor re it Stor Banks 1 unitranche and subordinated subordinated and unitranche ro t apital ro t or unior e t ur le ate Insights into the European Alternative Lending market 37 © Deloitte Alternative Capital Solutions Mid-capPrivate Placements debt senior Traditional Unitranche ’Story credit’ unitranche (mezzanine/PIK)Subordinated Growth capital Structured equity 1 2 3 4 5 6 7 There is a limited number of Alternative Lenders operating to L+600bps in pricing the L+450bps territory. A number of large funds are now actively raising capital to target this part of the market. Direct Lenders approach the mid-market with either a niche strategy (mainly new entrants) or a broad suite of Direct Lending products to cater for a range nancing needs. of fi The latter is mostly the approach of large asset managers. We have identifi ed seven distinctive haveWe identifi private debt strategies in the mid-market Direct Lending landscape: 1 4 3 2 7 6 5 Deloitte Alternative Lender| Insights Deal Tracker Autumn into 2019 the European Alternative Lending market Debt size Debt nitranche Mid cap private placements Stor credit unitranche Traditional senior de t S ar it inan ial Solutions o S ar it inan ial Solutions o Me anine Holdco P rowth capital uit Structured
ote Distresse strate ies are e lu e ro t is overvie Margin
What are the private debt strategies? debt private the are What Insights into the European Alternative Lending market 38 the investment. the Carried interest Carried return (alsoPreferred hurdle rate) fee Management strategy compare to other strategies? other to compare strategy How does the Direct Lending investment 2019 Autumn Tracker Deal Lender Alternative Deloitte Distressed Mezzanine opportunities lending/credit Specialty lending senior Direct Fund strategy © Deloitte Alternative Capital Solutions – a share of profits above the preferred return rate that the fund manager receives as compensation which is based on the performance of of performance the on based is which compensation as receives manager fund the that rate return preferred the above profits of –a share – an annual payment made by the limited partners in the fund to the fund’s manager to cover the operational expenses. operational the cover to manager fund’s the to fund the in partners limited the by made payment annual –an debt Includes distressed undervalued securities stressed and distressed, in Invest instruments other subordinated debt and loans mezzanine invest inPrimarily structure capital the of levels senior on focused Typically situations complex in and/or structure capital the across investments Opportunistic capital structure capital the of levels senior at credit corporate into directly Invest Description ‑ for ‑ control – a minimum annual return that the limited partners are entitled to before the fund manager starts receiving carried interest. carried receiving starts manager fund the before to entitled are partners limited the that return annual –a minimum 15 12 12 5 (Gross IRR) Target return ‑10% ‑ ‑ ‑ 18% 20% 25% | Insights into the European Alternative Lending market Lending Alternative European the into | Insights 3 5 years 3 1 period Investment ‑ ‑ ‑ 3 years 5 years 5 years year extensions) 2 (plus 7 8 year extensions) 2 (plus 10 years year extensions) 2 (plus year extensions) 1 (plus 5 Fund term Fund ‑ ‑ ‑ 10 years 10 years 10 years 10 years 7 years ‑ ‑ ‑ ‑ 2 optional one one 2 optional 3 optional one one 3 optional 3 optional one one 3 optional 3 optional one one 3 optional
on invested capital invested on 1.50% or commitments –1.75% on 1.50 strategy: and return target pending Various invested invested capital thereafter on basis a reduced on period, investment during commitments –1.75% on 1.50 than 1% commitments on than less or capital invested on –1.50% 1.25 Typically capital invested on –1% 0.6 around Typically Management fee Management
8% 8% 6 5 return Preferred ‑ ‑ 8% 6% 20% 20% 20% 15% 10% interest Carried ‑
Insights into the European Alternative Lending market 39 d erlan Poland dics Switz Nor spe iall o use on uro gal u t elux Por Ben © Deloitte Alternative Capital Solutions m gdo y Kin d e n y ited anc elan n r r tal I Spai I U F German
Deloitte Alternative Lender| Insights Deal Tracker Autumn into 2019 the European Alternative Lending market
Note: offices included with at least one dedicated Direct Lending professional. The graph does not necessarily provide an overview of the geographical coverage. Who are the Direct Lenders? Direct the are Who Insights into the European Alternative Lending market 40 Pros andConsperstructure eighted AverageCostofDe t ACD – asedonmid pointaverage range DA Structures | Insights into the European Alternative Lending market Lending Alternative European the 2019 into Autumn Tracker Deal | Insights Lender Alternative Deloitte the market? the What debt structures are available in © Deloitte Alternative Capital Solutions ears an
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ps nitran e ol o ol o i er pri in o nter re itor o er e uit le i le Stret e nitran e L 15bps ol o or illustrativepurposes are in i ativean onl an pri in presente ote t estru tures nitran e un nitran e ol o Senior e t an uit Insights into the European Alternative Lending market 41 LTM 2 1 2 1 © Deloitte Alternative Capital Solutions Accelerate the growth of the company and in value shareholder the grow exponentially a shorter time period. No separate equity raising required as Alternative Lenders can act as a one stop solution providing debt and minority equity. Significant capital that Alternative Lenders can lend to a single company (€150-300m) making Alternative Lenders ideal for long term partnership relationships and follow on capital for multiple acquisitions. • • • Key advantagesKey Key advantagesof using Alternative Lenders to fund a buyand build strategy may include: • • • 2 | Insights into the European Alternative Lending market 1 2 1 2 Alternative Lenders areactively looking to form longer term partnerships with performing private companies to fund expansion. Recent market transactions have been structured on Debt/EBITDA multiples as high as 4.5-5.0x including identifiable hard synergies. Typically, this is subject to c.30 – 40% implied equity in the structure, conservative based on enterprise valuations. A number of Alternative Lenders are able to fund across the capital structure from senior debt through minority equity. 1 • • • Opportunity • • • less turning are companies ‑ Deloitte Alternative Lender Deal Tracker Autumn 2019 2 1 Sponsor less 2 1
Sponsor Sponsor
est o urope o est Cost savings, revenues synergies and ability to purchase bolt on acquisitions at lower EBITDA multiples makes a buy and build strategy highly accretive for shareholder’s equity. Bank lenders are typically not able to fund junior debt/quasi equity risk and would require a sizable equity contribution from the shareholders to fund acquisitions. Traditionally private companies Traditionally further to without shareholder access funding lacked the ability to make transformational acquisitions. • • • Sponsor backed versus private Direct Lending deals As % of total deals per quarter • • • Background
More sponsor More to Direct Lenders to finance growth finance to Lenders Direct to Insights into the European Alternative Lending market 42 • calculations Indicative companies owned privately for acquisitions transformational Unlocking 2019 Autumn Tracker Deal Lender Alternative Deloitte • is is calculations Indicative alue creation through M A • • The calculations on this page illustrate the theoretical effect of value creation through acquisitions financed using Alternative Lenders. Alternative using financed acquisitions through creation value of effect theoretical the illustrate page this on calculations The illion arbitrage. multiple of a result as creation value any disregarding and assumptions £177m, same the using only been have would value equity the acquisition, Without the time. 4 years in £100m £252m to from grows value equity example this In ar et ar et © Deloitte Alternative Capital Solutions an it it an Step A uisition Step u er nitran e ar et as on alan e s eet rin s t e e uit value to to value e uit t e rin s s eet alan e on as Co ine s ner ies reation ue to ue alue uit un in Step stru ture eal ap ost un in un in uit De t arrants DA | Insights into the European Alternative Lending market Lending Alternative European the into | Insights ro t uit value S ner ies Step alue a ter ears a ter alue Step a uisition it ears a ter Cap stru ture a ter a ter ears e t utstan in arrants arrants a uisition it out ears a ter Cap stru ture o t e a uisition aresult as ol ers e uit or value reation o a itional a itional o esult • • • • • Assumptions • • • • • costs No transaction rate tax 20% Corporate Cash conversion; 75% pa; growth 10% EBITDA top on warrants 5% penny with 8% is debt of Cost in the business currently debt No synergies potential £2m with EBITDA £10mgenerate business Both Deloitte Debt and Capital Advisory 43 © Deloitte Alternative Capital Solutions
Deloitte Alternative Lender| Deloitte Deal Tracker Autumn 2019Debt and Capital Advisory
Capital Advisory Deloitte Debtand Deloitte Debt and Capital Advisory 44 • • What do we do for our clients? 2019 Autumn Tracker Deal Lender Alternative Deloitte • • • • • • • Debt and Capital Services provided Services Capital and Debt Advisory Capital and Debt • • • • • • • • • advice Independent Refinancing network. global our through markets debt of spectrum full the toadvice borrowers across We independent provide with those of our clients. our of those with aligned fully are objectives our – finance of providers Completely independent from Maturing debt facilities Maturing Rapid growth and expansion Rapid growth Accessing new debt markets debt new Accessing payments to shareholders payments facilitating Recapitalisations sheet balance from value release to finance based Asset Off balance sheet finance sheet balance Off from lenders proposals multiple Assessing © Deloitte Alternative Capital Solutions
• • • • • • • • • • • • • • disposals, mergers disposals, Acquisitions, execution expertise Global & resources the execution of raising debt. of execution the to through finance of sources available and structure capital optimum the on advice the provision of strategic from ranges expertise Our global reach. true giving Asia, and Africa America, North Europe, including 30 countries professionals based in 200 debt of team A leading currencies debt or operations in multiple denominated currency Foreign definitions covenant the in reflected be to need that impacts FX objectives strategic in a change of a result as required finance Additional maximise sale proceeds Staple debt packages to complexity greater newinvolving lenders and Strategic acquisitions, Depth and breadth of expertise in a variety of situations of a variety in expertise of breadth and Depth | Deloitte Debt and Capital Advisory Capital and Debt | Deloitte • • • • • • • • • • • • • • • • or negotiating Restructuring team Market leading on approach. hands our using achieve, we ofthe quality client outcomes and challenging transactions approachinnovative to our on ourselves We pride Advisory teams. Debt largest the of one with leader a Global as recognised Widely to be met be to requirements hedging banks and/or place in Derivatives group Lender debt to an Alternative transfer lenders Existing downgrade rating Credit pressure liquidity term Short covenants of breach potential or Real New money requirement
• • • • • • • • • • • • Treasury track record Demonstrable €25m up to €750m. to up €25m ranging from transactions debt is market target Our €10bn. of excess in debtcombined facilities with 100 transactions over on advised have we 12 months, last the In to be met be to requirements hedging banks Hedging implementation or currencies accounts, countries and companies, Cash in multiple strategies risk management commodity and rate interest FX, Develop exposures FX creating and currencies jurisdictions multiple in Operations
Deloitte Debt and Capital Advisory 45
Stable performance Cash generation Leverage Asset coverage Market share Competitors Barriers to entry Customer concentration Supplier concentration © Deloitte Alternative Capital Solutions High Few Many Low Low Stable High Low High Financial Performance Market position Clients Few Low Low High High Many Volatile Low High High credit quality Complex Complex Deloitte Alternative Lender| Deloitte Deal Tracker Autumn 2019Debt and Capital Advisory High Strong High Easy Stable Low Low High value-add Low Low Low Weak High High High Volatile Difficult Sector Commodity Management Shareholders urisdiction
Management quality Corporate Governance Shareholder commitment Jurisdiction
Growth Cyclicality Seasonality Scarcity of product Changing regulatory environment How iscomplex yourcredit? Deloitte Alternative Lender Deal Tracker Autumn 2019 Deloitte Debt and Capital Advisory v isor A l Deloitte Luxembourg private debt Capita
contacts t an e t D Deloitte
Philippe Lenges lena Petrova Ben amin Toussaint ea o rivate De t Au it Corporate inan e A visor Alternative nvest ent a artner Dire tor artner plen es eloitte lu elpetrova eloitte lu toussaint eloitte lu
Magda T lus Pierre Masset Henri Slachmu lders Corporate inan e A visor Corporate inan e A visor Alternative nvest ent a ana er artner Dire tor at lus eloitte lu p asset eloitte lu sla u l ers eloitte lu
© Deloitte Alternative Capital Solutions D Deloitte Alternative Lender Deal Tracker Autumn 2019 Deloitte De t an Capital A visor e l o i t t e
D Deloitte Debt and Capital Advisory e t
a n
credentials C a p
Selected lo al transactions i t a
UK/Denmark l
S A /Europe/USA UK N lands/Spain Dem Rep Congo Poland A v i s o r ell uip ent i ite A e Stu ent otel C i ite Covi en e ase a p apital tructure dvisor c uisition inance evelopment inance ebt ricing dvisor c uisition inance
Aug 2 1 AR1 5bn Aug 2 1 16 m Aug 2 1 Undisclosed Aug 2 1 1 6m Aug 2 1 Undisclosed Aug 2 1 15m
UK South Africa UK UK Poland Ireland
A C i ite ea ers o ans roup Co ital istal nia aterlan redit ating dvisor rowth inancing estructuring B
Aug 2 1 Undisclosed Aug 2 1 Undisclosed Jul 2 1 Undisclosed Jul 2 1 Undisclosed Jul 2 1 5 m Jul 2 1 Undisclosed
Netherlands Belgium Netherlands Netherlands UK Belgium
Air rete urope De eunin a er art C ran is o artners D e ia c uisition inancing c uisition inancing c uisition inancing rivate lacement
Jul 2 1 Undisclosed Jul 2 1 Undisclosed Jul 2 1 Undisclosed Jul 2 1 Undisclosed Jun 2 1 Undisclosed Jun 2 1 15 m
Netherlands Denmark UK UK UK Belgium
e Stu ent otel ir en o e Capital Carl le roup ele os Capital D e ia mendment lub eal c uisition inancing c uisition inancing mendment lub eal
Jun 2 1 Undisclosed Jun 2 1 13 m Jun 2 1 Undisclosed Jun 2 1 Undisclosed Jun 2 1 Undisclosed Jun 2 1 Undisclosed
© Deloitte Alternative Capital Solutions Deloitte Alternative Lender Deal Tracker Autumn 2019 Deloitte De t an Capital A visor r o s v i A l a t i p a C n a e t UK UK Ireland Denmark UK Denmark D e t t i o C C ApS l e
D Capital res C C ApS o ar Capital otel it c uisition inancing c uisition inancing rowth inancing c uisition inancing c uisition inancing
May 2 1 Undisclosed May 2 1 Undisclosed Apr 2 1 6 m Apr 2 1 m Apr 2 1 Undisclosed Mar 2 1 11m
Ireland Denmark UK UK UK UK
ati an ropert roup ir en o e Capital orian e ntertainer uorn oo s rowth inancing c uisition inancing taple inancing c uisition inancing
Mar 2 1 Undisclosed Mar 2 1 35m Mar 2 1 Undisclosed Mar 2 1 Undisclosed Mar 2 1 3 m Mar 2 1 123m
Netherlands/UK Netherlands France Ireland UK Belgium
n er e ast ol in S S ne Cent o esavers A lan Co ell ebt dvisor rowth inancing c uisition inancing
Feb 2 1 Undisclosed Feb 2 1 Undisclosed Feb 2 1 Undisclosed Feb 2 1 m Feb 2 1 Undisclosed Feb 2 1 Undisclosed
UK UK Germany Poland UK UK
iuro n est i Sterlin ar a A ess o ilit Con ept apitalo S A ort o ne Aut orit Co i c uisition inancing c uisition inancing c uisition inancing Bridge inancing
Feb 2 1 Undisclosed Feb 2 1 Undisclosed Feb 2 1 Undisclosed Jul 2 1 Undisclosed Jan 2 1 6 m Jan 2 1 Undisclosed
© Deloitte Alternative Capital Solutions D Deloitte Alternative Lender Deal Tracker Autumn 2019 Deloitte De t an Capital A visor e l o i t t e
D e t
a n C a p
Selected lo al transactions i t a l
UK/US Hungary UK/Romania UK UK UK A v i s o r Capital ner roup C i o ple Aurora uiti Citation c uisition inancing c uisition inancing
Dec 2 1 Undisclosed Dec 2 1 13 m Dec 2 1 164m Dec 2 1 5 m Dec 2 1 14 m Dec 2 1 Undisclosed
UK UK Ireland France UK Netherlands
eptor Centri ealt ons ale Capital artners roupe arot Sa est le ase a p S c uisition inancing ebt dvisor rowth inancing
Dec 2 1 Undisclosed Dec 2 1 Undisclosed Dec 2 1 22 5m Dec 2 1 Undisclosed Nov 2 1 7 5m Nov 2 1 55m
UK UK UK/Germany NL/Curacao UK UK
a es rant Core Assets roup S A uale tra D a A visors Capital c uisition inancing c uisition inancing c uisition inancing
Nov 2 1 m Nov 2 1 Undisclosed Nov 2 1 Undisclosed Nov 2 1 ANG325m Nov 2 1 2 m Nov 2 1 165m
Netherlands France UK UK UK Netherlands
or ian S Do te estio SS Sa est le ive De rees eal state ebt dvisor c uisition inancing rowth inancing
Nov 2 1 Undisclosed Oct 2 1 Undisclosed Oct 2 1 Undisclosed Oct 2 1 Undisclosed Oct 2 1 7 5m Oct 2 1 Undisclosed
© Deloitte Alternative Capital Solutions y Deloitte Alternative Lender Deal Tracker Autumn 2019 | Deloitte Debt and Capital Advisory r o s dv i A l a t i p a C d n a eb t UK UK UK UK UK UAE/UK D e t t i o l e
D Medifox SJP Card Factory Pets at Home Sequence Healthcare Undisclosed Acquisition Financing Securitisation Amend & Extend Acquisition Financing
Oct 2018 Undisclosed Sep 2018 Undisclosed Sep 2018 £200m Sep 2018 £260m Sep 2018 £22.5m Sep 2018 Undisclosed
UK/US UAE/UK UK UK UK UK/Denmark
Project Emoji
Sovos Compliance Undisclosed ByBox Education Personnel Phoenix Equity Partners It Relation A/S Acquisition Financing Acquisition Financing Acquisition Financing Debt Advisory Acquisition Financing
Sep 2018 Undisclosed Sep 2018 Undisclosed Sep 2018 Undisclosed Sep 2018 Undisclosed Aug 2018 £20m Aug 2018 Undisclosed
UK France Canada Ireland UK/Ireland UK/Italy
Macquarie Group Latécoerè Canaccede Financial Lonsdale Capital Partners Applegreen Dada Acquisition Financing Debt Advisory Sub-Debt Financing Acquisition Financing Acquisition Financing
Aug 2018 Undisclosed Aug 2018 Undisclosed Jul 2018 Undisclosed Jul 2018 Undisclosed Jul 2018 €300m Jul 2018 Undisclosed
UK UK UK UK UK Netherlands
Bridgepoint Gala Bingo Wood Carpetright Auto Trader Egeria – JET Group Acquisition Financing Amend & Extend Amend & Extend
Jun 2018 £62m Jun 2018 Undisclosed Jun 2018 Undisclosed Jun 2018 £90m Jun 2018 £400m Jun 2018 €105m
50 © Deloitte Alternative Capital Solutions Deloitte Alternative Lender Deal Tracker Autumn 2019 | Notes
Notes
© Deloitte Alternative Capital Solutions 55 Deloitte Alternative Lender Deal Tracker Autumn 2019 | Notes
Notes
56 © Deloitte Alternative Capital Solutions Contents
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