The COVID-19 pandemic has had a massive impact on European debt markets. Leverage levels, terms and covenants have recalibrated in response, but lenders are seeking ways to flourish in the "new normal".
The latest edition of AlixPartners' Mid-Market Debt Report, covers more than 100 bank and non-bank lenders active in the UK and European mid-market (debt transactions valued up to €300 million).
- In the first three months of 2020, the European mid-market remained active. Deals volumes were in line with the buoyant 2019
- New deal activity plummeted in Q2 2020 to the lowest level recorded since our survey began in 2016.
- Government support has been well-received, but many borrowers have struggled to access sufficient additional liquidity.
- Credit funds are focusing on their special situations and secondary strategies in order to deploy capital.
- ABL activity remained robust before and after COVID.