Figures reveal more UK firms turning to shadow banking

Chris Papadopoullos
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NON-BANK lenders recorded 50 deals in the UK and mainland Europe in the first three months of 2015, financing 33 takeovers.

Alternative lending is on the rise in the UK, with 28 of those 50 occurring in Britain, financial services giant Deloitte said today in its Alternative Lender Deal Tracker.

These lenders range from larger asset managers to smaller funds set up by ex-investment professionals.

“The alternative lenders continue their forward march, alongside the mainstream banks. We expect to see more M&A [mergers and acquisitions] from private corporates fuelled by funding from alternative lenders,” said Fenton Burgin, head of UK debt advisory at Deloitte.

“This relatively new type of debt financing is providing opportunities for privately owned companies accessing debt for larger scale acquisitions that were traditionally beyond their capability.”

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