Direct lending’s growing pains
More and more private equity sponsors in Europe are now comfortable using direct lenders in their deals – indeed many have done so multiple times. After a record volume of fundraising in 2017, funds are competing ever more fiercely for the mandates on offer – and in the process some are losing sight of the real risk adjusted returns that they are chasing.
When London-based alternative asset manager Intermediate Capital Group (ICG) closed its third European senior secured debt fund at €5.2 billion last November, it was a wake-up call for anyone that needed it about the amount of private debt now chasing assets both in the region and worldwide.
In 2017 $56.2