Alternative lending volumes at record levels in third quarter

Ollie Gordon
ALTERNATIVE non-bank lenders recorded a 109 per cent increase in deals in the UK and Europe for the third quarter of this year, according to research from business advisory and accountancy firm Deloitte.

Deloitte’s alternative lender deal tracker recorded 73 deals for the quarter, the highest volume on record and over double the 35 for the third quarter of last year.

The Big Four accountancy giant has also estimated that European direct lending funds currently hold €50bn (£39bn) of committed capital – both spent and unspent – for private debt, and are looking raise another €15bn over the coming year.

Fenton Burgin, head of UK debt advisory at Deloitte, commented: “There is a growing recognition in lending that one size simply does not fit all. The outlook for alternative lenders is strong for 2015, based on significant capital raised this year.

“Other factors such as changing investor appetite in a low-yield environment and the improving economic activity in the UK and US economies will only boost this activity.

“Traditional lenders still face the challenge of capital shortfalls and increased regulatory demands on the allocation of what bank capital there is.”

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