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Celebrating our 10th anniversary with a record year for alternative lending deals

Deloitte Alternative Lender Deal Tracker Spring 2022

This issue covers data for the second half of 2021 and includes 443 Alternative Lender deals. This represents a 79% increase in the number of deals from H2 2020, and a 30% increase from H1 2021.

10 years of the ALDT

In 2012, we set out to track the emergence of a financing solution that had grown in popularity in the aftermath of the 2008/09 Global Financial Crisis (“GFC”). Banks, constrained by capital reserve requirements and a more conservative outlook on risk, began to vacate the mid-market, leaving a door open for direct lenders in the shape of asset managers, pension and insurance funds and sovereign wealth funds looking for yield in a low interest rate environment.

By December 2021, the Alternative Lender Deal Tracker had amassed over 3,500 deals submitted by 68 of the most active lenders in Europe and continues to be the leading voice within Private Debt. In this edition, we reflect on the development of the market, exploring 10 observations in 10 years gathering the thoughts of some of our participants who have shaped the landscape
of Alternative Lending.

Key Findings - Spring 2022

Q4 deal volume rounds off a record-breaking year

A busy Q4 2021 resulted in the most active year of direct lending since Deloitte began tracking private debt deals in 2012, with a further 217 deals bringing the full-year 2021 total to 785.

Continental Europe grows in popularity, but the UK remains the most active region

The UK continues to be the epicentre for European direct lending, accounting for 30% of deals in Q4 and 35% of all deals in 2021.

Deal concentration across TMT, Healthcare, and Business Services reach an all-time high

TMT remains the most active industry for direct lending in Europe, accounting for 25% of deals in Q4 and 24% across 2021. Healthcare & Life Sciences accounted for 18% in Q4, followed by Business, Infrastructure & Professional Services at 15%.

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