Debt Capital Markets Gambit Review May 2023

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Gambit’s Debt Capital Markets Review for May 2023 examines the latest developments in the debt markets, providing insight and analysis into the current domestic lending landscape.

Given the 350% increase in the Bank of England’s base rate since May 2022 and the increase in funding pricing spreads, the UK is now firmly a ‘lenders market’.

Financial Institutions are now dictating the terms, scrutinising covenant headroom, modelling sensitivity analysis and focusing on EBITDA ‘add-backs’.

However, whilst traditional sources of finance might be cautious in deploying capital, the private credit and alternative/specialist lending markets remain ‘open’ for well prepared borrowers.

With the UK Private Credit market sitting on £47.2bn of ‘dry-powder’ which it’s actively seeking to deploy, as well as 76.5% of UK alternative lenders expecting to increase lending in 2023 compared to 2022, high quality businesses still have sufficient opportunity to fundraise for their growth plans.

Leveraging the expertise of a knowledgeable debt adviser to support a quality proposal, with deep contacts in the lending community, is key to achieving a successful fundraise in this dynamic market.

To read the full report, click here.

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