Munich, Frank\u00adfurt, Zurich \u2011Despite strong first half, only 89 LBO finan\u00adcings in 2018 \u2014 first decline since 2012. After years of steady growth, the German LBO market has recor\u00added a decline for the first time since the end of the finan\u00adcial crisis. The number of comple\u00adted tran\u00adsac\u00adtions fell to 89 last year compared with 103 in 2017 \u2014 a drop of almost 15 percent. Alter\u00adna\u00adtive finan\u00adciers, on the other hand, contin\u00adued their success story unde\u00adter\u00adred in 2018, defy\u00ading the gene\u00adral decline in the German LBO market. The market share of debt funds rises to almost 50 percent.<\/p>\n
The current MidCap\u00adMo\u00adni\u00adtor of the invest\u00adment bank GCA Altium, which regu\u00adlarly pres\u00adents lever\u00ada\u00adged buyout finan\u00adcings with a loan volume of between 20 and 500 million euros, shows for the In 2018 as a whole, debt funds accoun\u00adted for almost half of the German LBO market<\/strong>: At 35 percent, it has again increased signi\u00adfi\u00adcantly compared with 2017 and now amounts to 48 percent. Of the 89 tran\u00adsac\u00adtions in 2018, Debt Funds successfully execu\u00adted 43 tran\u00adsac\u00adtions. The banks\u2019 market share was still 65 percent in 2017 and has now shrunk to 52 percent with 46 transactions.<\/p>\n The success of alter\u00adna\u00adtive finan\u00adcing parties is based on seve\u00adral factors. On the one hand, it can be obser\u00adved that banks are beco\u00adming more risk-averse in indi\u00advi\u00addual tran\u00adsac\u00adtions \u2014 espe\u00adci\u00adally with cycli\u00adcal compa\u00adnies. More flexi\u00adble debt funds fill this gap, secu\u00adring tran\u00adsac\u00adtions that would not have been finan\u00adced with banks \u2014 or only much more conser\u00adva\u00adtively. On the other hand, a signi\u00adfi\u00adcantly increased number of debt funds can now provide volu\u00admes of EUR 150 million and more per indi\u00advi\u00addual tran\u00adsac\u00adtion, making a complex banking club super\u00adfluous. \u201cThe time advan\u00adtage of larger, single-source finan\u00adcings now plays a parti\u00adcu\u00adlarly frequent role in compe\u00adti\u00adtive auctions,\u201d comm\u00adents Johan\u00adnes Schmit\u00adtat, Mana\u00adging Direc\u00adtor in GCA Alti\u00adum\u2019s Frank\u00adfurt office<\/strong>. It can also be obser\u00adved that buy-and-build stra\u00adte\u00adgies in parti\u00adcu\u00adlar are being finan\u00adced via alter\u00adna\u00adtive lenders. \u201cThe final matu\u00adrity of the loans, as well as grea\u00adter flexi\u00adbi\u00adlity in terms, frees up capi\u00adtal for growth through acqui\u00adsi\u00adti\u00adons,\u201d says Norbert Schmitz, also a mana\u00adging direc\u00adtor at GCA Altium.<\/p>\n It is also striking that the success of alter\u00adna\u00adtive finan\u00adcing parties is not limi\u00adted to Germany. Across Europe, 219 LBO tran\u00adsac\u00adtions were finan\u00adced by debt funds last year.<\/strong> \u201cCompared to 2017, that\u2019s another 22 percent increase,\u201d says Norbert Schmitz. Howe\u00adver, Q4 saw the first signi\u00adfi\u00adcant quar\u00adter-on-quar\u00adter decline of 14 tran\u00adsac\u00adtions (down 23 percent). In addi\u00adtion to Germany with 43 tran\u00adsac\u00adtions, alter\u00adna\u00adtive finan\u00adcing was also used inten\u00adsi\u00advely in the UK (67 tran\u00adsac\u00adtions) and France (48 transactions).<\/p>\n Over\u00adall, GCA Altium does not expect banks to regain lost market share in the near future. On the contrary, a further increase in alter\u00adna\u00adtive finan\u00adcing is expec\u00adted in 2019.<\/p>\n On the banking side, Commerz\u00adbank<\/strong> contin\u00adued its successful first half of the year, ranking first for 2018 as a whole with 13 transactions. Even though the London large-cap and high-yield market faced fierce head\u00adwinds for low margins and very borrower-friendly terms seve\u00adral times in 2018, GCA Altium did not see any impact on the German LBO market. \u201cDue to the contin\u00adued extre\u00admely compe\u00adti\u00adtive envi\u00adron\u00adment between banks and debt funds, we expect stable condi\u00adti\u00adons in the short term,\u201d adds Norbert Schmitz.<\/p>\n About GCA Altium<\/strong> Munich, Frank\u00adfurt, Zurich \u2011Despite strong first half, only 89 LBO finan\u00adcings in 2018 \u2014 first decline since 2012. After years of steady growth, the German LBO market has recor\u00added a decline for the first time since the end of the finan\u00adcial crisis. The number of comple\u00adted tran\u00adsac\u00adtions fell to 89 last year compared with 103 [\u2026]<\/p>\n","protected":false},"author":2,"featured_media":42580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[886,1364,1366],"tags":[],"class_list":["post-42569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-en","category-featured-en","category-news-en","news-category-deals-news-en"],"yoast_head":"\n
\n Unicre\u00addit<\/strong> (10) was able to defend its 2nd place, whereas last year\u2019s market leader SEB<\/strong> (9) has to share 3rd place with Bayern LB<\/strong> (9). It is note\u00adwor\u00adthy here that the number of tran\u00adsac\u00adtions finan\u00adced by banks recor\u00added a decrease of 32 percent and, at 46 in 2018, is signi\u00adfi\u00adcantly below the level of 2017 (68).<\/p>\n
\nGCA Altium is the Euro\u00adpean divi\u00adsion of GCA. The global invest\u00adment bank provi\u00addes stra\u00adte\u00adgic M&A as well as capi\u00adtal markets advi\u00adsory services to growth compa\u00adnies and market leaders. GCA opera\u00adtes globally with over 400 experts in 18 loca\u00adti\u00adons in the US, Asia and Europe. Built by the people who run the busi\u00adness, GCA specia\u00adli\u00adzes in deals that require commit\u00adment, an unbi\u00ada\u00adsed view, exper\u00adtise and unique networks. www.gcaaltium.com<\/p>\n","protected":false},"excerpt":{"rendered":"