Marlborough Partners’ Q4 2017 Report
Marlborough Partners, the independent debt advisory firm, today published its report on the European Leveraged Finance market for Q4 2017.
The report, analysing data from a number of sources, shows European leveraged loan volumes stood at a post crisis high at €120bn, up 70% on 2016. High yield bond volumes were similarly robust in 2017 with €94bn issued representing a strong year for leveraged finance deal volumes.
The Q4 2017 Report also discusses some of the recent trends seen in the Private Debt market. 2017 was a fantastic year for private debt across the European landscape, with some of the largest private debt funds raised in Europe and new private lending strategies launched. In particular, the proliferation of super senior and unitranche structures (1st Loss / 2nd Loss structures) has seen a growing acceptance of private debt solutions across Europe.
Marlborough Managing Partner, Gurjit Bedi, said: “Private debts funds have dominated the European mid-market in a way not seen historically, they are now seen typically as the preferred primary financing option for many Sponsors. In addition, notwithstanding the tight yields we have seen over 2017 in the loan markets, a number of credits which might have been suitable candidates for the TLB loan market have opted to go down the private debt route for a multitude of reasons. Given the emerging step change of fund hurdles and different pools of capital being raised by these funds, for stellar credits we are expecting to see a pricing compression on 1st /2nd Loss structures, offering blended pricing close to where the Term loan B markets was 18 months ago”
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About Marlborough Partners
Marlborough Partners, based in London and Frankfurt, provides specialist, independent advice to private equity firms, portfolio companies and corporates, on sourcing and structuring debt and other non-equity finance. Since 2003, the Marlborough team has advised on 228 completed transactions – from the simple to the highly complex – comprising over €57bn of primary market debt issuance, waivers and amendments and loan restructurings in 11 European jurisdictions. For further information, visit our website www.marlboroughpartners.com