AlixPartners European mid-market debt survey: senior banks fought back in 2016, but private debt is expanding

Despite political and macroeconomic uncertainty, European debt markets remained buoyant in 2016—supporting increasingly borrower-friendly terms. As the supply-and-demand imbalance continues, there are few signs of the market softening. Yet we are seeing increased caution in sectors like consumer products and retail.

At a glance

• Overall debt transaction count increased 1% to 460 in 2016, but UK lending volumes were subdued.
• Senior debt structures prospered as borrowers traded leverage for increasingly competitive senior terms.
• Unitranche volumes were down in the UK and overall, but France grew year-on-year.
• The number of private debt funds increased in terms of quantum and fund size—with an estimated European dry powder of €55 billion.