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Q4 2020 European Direct Lending Perspectives

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Q4 2020 European Direct Lending Perspectives Creditflux Q4 2020 European Direct Lending Perspectives Going for gold Direct lending set for a big year in 2021 Creditflux European Direct Lending Forum European Direct Lending Perspectives Perspectives Lending Direct European 11 March 2021 13:00 GMT Book now events.creditflux.com/direct-lending For sponsorship information please contact: Karina Ross Chris Coe Alissa Rozen [email protected] [email protected] [email protected] +44 20 3741 1058 +44 20 3741 1075 +1 212 500 1394 Event sponsors: FinDox © Creditflux/Debtwire 2 Creditflux DL Book now Mar21 - A4 ammended.indd 1 23/02/2021 16:11:12 Contents Contents Editor’s letter: Direct lenders set for a bumper 2021 4 League tables: Debtwire Par’s exclusive rankings 5 Data analysis: Direct lending figures at your fingertips 9 News: Selected stories from Debtwire and Creditflux 12 Fundraising analysis: Direct lending shows its resilience 14 Feature: 2020 review: When will the real test begin? 17 Survey: Direct lending new year euphoria 20 Feature: 2021 outlook: The dust is yet to settle 24 © Creditflux/Debtwire 3 Direct lenders will dance as long as the music plays Welcome to the ninth edition of the Creditflux and Debtwire European Direct Lending Perspectives (EDLP). European Direct Lending Perspectives Perspectives Lending Direct European In this issue, we look at how direct lenders exceeded early-2020 expectations and bounced back with aplomb to set themselves up for a strong 2021 Mariana Valle Head of leveraged finance and direct The direct lending market finished 2020 with M&A in Q1 2021 is proving fruitful so far, which lending coverage, a bang, defying all early-year expectations is likely to lead to healthy issuance in the early co-deputy editor when the pandemic began and debt providers part of this year. Inflated asset prices are also Europe became nervous about deploying. Fast forward making way for more pre-emptive approaches several months, and many funds will tell you Q4 from private equity (PE) firms, which in turn is was their best-ever quarter. creating more opportunities for direct lenders, given their ability to act quickly and quietly. Direct lending issuance totalled €15.8 billion in 2020, a 13% decline from 2019’s €18.2 In this edition, we look back over 2020 to draw billion. But issuance in the final quarter was expectations for the year ahead. You will find strong, reaching €4.13 billion across 124 deals, the usual deal data, league tables, fundraising according to Debtwire Par data. data and news, as well as features on pent-up demand and how those in the direct lending Private debt providers are, in fact, so upbeat market are preparing to brush themselves off that 59% of respondents to our yearly survey and bounce back better than ever. said they expect coronavirus disruption to have only a minimal impact on their fundraising efforts in 2021, with another 32% saying they expect no, or indeed, a positive impact. This is in stark contrast to last year’s fundraising figures, when just €16 billion was raised – a 56% year-on-year drop, according Fast forward several to Debtwire Funds Data. But 2021 is likely to make up for lost time, with 44% of respondents months, and many funds expecting €20-30 billion to be raised this year, another 22% expecting €30-40 billion and a will tell you Q4 was their further 22% anticipating €40-50 billion. best-ever quarter. Despite the wobbles of covenant problems in portfolios, some level of debt restructurings and intermittent periods of economic instability caused by recurring national lockdowns, our survey reveals that the market expects 2021 to be a good year for direct lending. Almost 70% of respondents believe deployment will increase this year. Sporadic lockdowns in the UK and continental Europe, difficulties over vaccine deployment and emerging variants of COVID-19 are certainly factors that could hamper activity in 2021, but direct lenders will continue to dance as long as © Creditflux/Debtwire the music plays. 4 League tables League League tables Debtwire Par’s exclusive league tables show the top lenders in Europe in the key regions and for mid-market and senior debt 2020 FYE EMEA Direct Lending League 2020 FYE EMEA Direct Lending Table (Senior & Subordinated) League Table (Senior-only) Research by Darren Rank Direct lender # of % Rank Direct lender # of % Maharaj deals share deals share Manager of 1 Ares 51 10.8% 1 Ares 48 11.1% global fixed income data 2= Barings Direct 25 5.3% 2 Barings Direct 25 5.8% Lending Lending 2= Pemberton 25 5.3% 3 Pemberton 24 5.6% 4 Arcmont AM 22 4.7% 4 Arcmont AM 22 5.1% 5 Kartesia 21 4.4% 5 Kartesia 20 4.6% 6 Alcentra 20 4.2% 6= Alcentra 19 4.4% 7= Bridgepoint 19 4.0% 6= Bridgepoint 19 4.4% Credit Credit 7= CIC Private 19 4.0% 8 BlackRock 17 3.9% Debt 9= Apera AM 16 3.7% 9= IDInvest 18 3.8% 9= CVC Credit 16 3.7% 9= Tikehau 18 3.8% 9= IDInvest 16 3.7% 11= BlackRock 17 3.6% 9= Tikehau 16 3.7% 11= CVC Credit 17 3.6% 13= CIC Private 13 3.0% 13 Apera AM 16 3.4% Debt 14 Permira 13 2.8% 13= Permira 13 3.0% 15= Ardian 12 2.5% 15 LGT Private 12 2.8% 15= LGT Private Debt 12 2.5% Debt 16 Muzinich 11 2.6% 17 Muzinich 11 2.3% Private Debt Private Debt 17= Ardian 10 2.3% 18 Ture Invest 10 2.1% 17= Ture Invest 10 2.3% 19 DunPort Capital 9 1.9% 19 DunPort Capital 9 2.1% 20= Bright Capital 8 1.7% 20= Bright Capital 8 1.9% 20= Cordet Capital 8 1.7% 20= Cordet Capital 8 1.9% 20= HF Private Debt 8 1.7% 20= HF Private Debt 8 1.9% 20= Shard Credit 8 1.7% 20= Shard Credit 8 1.9% 24= Crescent 7 1.5% Capital 24= Crescent 7 1.6% Capital 24= Investec 7 1.5% 24= Investec 7 1.6% © Creditflux/Debtwire 26 Capital Four 6 1.4% 5 2020 FYE EMEA Direct Lending Mid-market League Table 2020 FYE EMEA Direct Lending Large-cap League Table (<€150m) (Senior & Subordinated) (>€150m) (Senior & Subordinated) Rank Direct lender # of deals % share Rank Direct lender # of deals % share 1 Ares 27 7.0% 1 Ares 24 28.6% 2 Barings Direct Lending 20 5.2% 2 Pemberton 9 10.7% 3= Alcentra 19 4.9% 3 Arcmont AM 6 7.1% 3= Kartesia 19 4.9% 4= Bridgepoint Credit 5 6.0% 5 IDInvest 17 4.4% 4= Barings Direct Lending 5 6.0% 6= Apera AM 16 4.1% 4= Park Square 5 6.0% 6= Arcmont AM 16 4.1% 7= HPS 4 4.8% European Direct Lending Perspectives Perspectives Lending Direct European 6= Pemberton 16 4.1% 7= BlackRock 4 4.8% 9 CIC Private Debt 15 3.9% 7= CIC Private Debt 4 4.8% 10= Bridgepoint Credit 14 3.6% 7= Permira 4 4.8% 10= CVC Credit 14 3.6% 7= Tikehau 4 4.8% 10= Tikehau 14 3.6% 12= Apollo GM 3 3.6% 13 BlackRock 13 3.4% 12= Bain Capital Credit 3 3.6% 14 LGT Private Debt 12 3.1% 12= CVC Credit 3 3.6% 15 Muzinich Private Debt 11 2.8% 12= Deutsche Bank Direct 3 3.6% Lending 16= Ardian 10 2.6% 12= GS Private Capital 3 3.6% 16= Ture Invest 10 2.6% 12= KKR 3 3.6% 18= DunPort Capital 9 2.3% 2020 FYE UKI Direct Lending League Table 2020 FYE DACH Direct Lending League Table (Senior & Subordinated) (Senior & Subordinated) Rank Direct lender # of deals % share Rank Direct lender # of deals % share 1 Ares 32 17.7% 1= BlackRock 8 10.4% 2 Pemberton 13 7.2% 1= Pemberton 8 10.4% 3 Barings Direct Lending 12 6.6% 3= Bright Capital 7 9.1% 4= Alcentra 10 5.5% 3= HF Private Debt 7 9.1% 4= Apera AM 10 5.5% 5= Apera AM 4 5.2% 4= CVC Credit 10 5.5% 5= Ares 4 5.2% 7 DunPort Capital 9 5.0% 5= Barings Direct Lending 4 5.2% 8= Arcmont AM 8 4.4% 8= Ardian 3 3.9% 8= Bridgepoint Credit 8 4.4% 8= Capital Four 3 3.9% 8= Shard Credit 8 4.4% 8= Muzinich Private Debt 3 3.9% 11 Kartesia 7 3.9% 11= Akquivest 2 2.6% 12= LGT Private Debt 6 3.3% 11= Alcentra 2 2.6% 12= Permira 6 3.3% 11= Arcmont AM 2 2.6% 14= BlackRock 4 2.2% 11= Bridgepoint Credit 2 2.6% 14= Investec 4 2.2% 11= Cordet Capital 2 2.6% 16= HPS 3 1.7% 11= Hayfin Capital 2 2.6% 16= KKR 3 1.7% 11= IDInvest 2 2.6% 16= Muzinich Private Debt 3 1.7% 11= Investec 2 2.6% 16= Shawbrook 3 1.7% 11= LGT Private Debt 2 2.6% © Creditflux/Debtwire 6 League tables League 2020 FYE France & Monaco Direct Lending League Table 2020 FYE Southern Europe Direct Lending League Table (Senior & Subordinated) (Senior & Subordinated) Rank Direct lender # of deals % share Rank Direct lender # of deals % share 1 CIC Private Debt 19 24.4% 1= Kartesia 6 13.3% 2 IDInvest 14 17.9% 1= Oquendo Capital 6 13.3% 3 Tikehau 10 12.8% 3 Tikehau 4 8.9% 4 Barings Direct Lending 6 7.7% 4= Anthilia Capital 3 6.7% 5 Ardian 5 6.4% 4= Arcmont AM 3 6.7% 6= BlackRock 4 5.1% 4= Azimut 3 6.7% 6= Bridgepoint Credit 4 5.1% 4= Muzinich Private Debt 3 6.7% 6= Kartesia 4 5.1% 4= Resilience Partners 3 6.7% 9= Alcentra 3 3.8% 9= CVC Credit 2 4.4% 9= Arcmont AM 3 3.8% 9= Equita Capital 2 4.4% 9= CVC Credit 3 3.8% 11= Alantra 1 2.2% 12= Ares 2 2.6% 11= Apollo GM 1 2.2% 12= CAPZA Private Debt 2 2.6% 11= Banca Finanziaria 1 2.2% 12= LGT Private Debt 2 2.6% 11= BlackRock 1 2.2% 12= Pemberton 2 2.6% 11= Bridgepoint Credit 1 2.2% 12= Siparex 2 2.6% 11= CAPZA Private Debt 1 2.2% 17= Access Capital 1 1.3% 11= CIT Group 1 2.2% 17= Actomezz 1 1.3% 11= Green Arrow 1 2.2% 17= Andera Partners 1 1.3% 11= GS Private Capital 1 2.2% 17= Apera AM 1 1.3% 11= H&A Global IM 1 2.2% 17= GS Private Capital 1 1.3% 11= HIG Capital 1 2.2% 17= Hayfin Capital 1 1.3% 11= IDInvest 1 2.2% 17= ICG 1 1.3% 11= LGT Private Debt 1 2.2% 17= Muzinich Private Debt 1 1.3% 11= Och-Ziff Capital 1 2.2% 2020 FYE Benelux Direct Lending League Table (Senior & 2020 FYE Nordic Direct Lending League Table (Senior & Subordinated) Subordinated) Rank Direct lender # of deals % share Rank Direct lender # of deals % share 1 Ares 5 11.1% 1 Ture Invest 9 22.0% 2= Alcentra 3 6.7% 2 Ares 8 19.5% 2= Barings Direct Lending 3 6.7%
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