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Welcome to the third edition of our Guide to Private Credit in
Europe.
The European market for sub-investment grade corporate credit is
now well established. This has been driven in large part by the
ongoing move towards direct lenders as a growing source of debt
financing. A wide array of private debt products are now available
to borrowers in addition to, or as an alternative to, traditional
bank lending.
This shift looks set to continue in light of the ongoing
instability and uncertainty in the economic landscape and a
challenging environment for the capital markets, as well as
legislative changes in domestic insolvency processes /
deregulation. The factors are encouraging corporates to
recapitalise or restructure without using traditional funding
sources. With direct lenders raising ever larger funds and having
the flexibility to deploy across the credit spectrum on bigger and
bigger transactions, they continue to further take the place of the
capital markets by presenting borrowers with a stable source of
capital when more traditional lenders may be looking to
retrench.
At a pan-European level, the recast European insolvency
regulation overlay continues to seek to regulate forum shopping and
to rebalance the interests of creditors and debtors in securing
certainty of outcome when things go wrong. All the while, political
pressure is reducing flexibility to mitigate tax liabilities and
increasing demand for regulatory transparency from counterparties
across the capital structure.
This Guide to Private Credit in Europe includes key issues for
consideration in private credit transactions and cross-border
lending across 13 jurisdictions, providing both a high-level
overview and a more detailed jurisdiction-by-jurisdiction
analysis.
To read this Guide in full, please click
here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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