The region’s dealmaking community is seeing the green shoots of recovery this Spring as companies increasingly look to alternative lenders, according to experts at Fresh Thinking Advisory.
The firm reports a significant 50% increase in enquiries from companies seeking finance and renewed interest from alternative lenders in the first quarter of the year against the last three months of 2023.
Commenting on the trend, Oliver Reece, managing director at Fresh Thinking Advisory, said: “Overall, the data suggests that while there is a level of uncertainty ahead of a probable general election in the Autumn, there are signs of a potential funding rebound in 2024 as dealmakers adapt to the changing market conditions. For our part, it’s been a busy first quarter for Fresh Thinking Advisory with several deal completions and some exciting new clients.”
The UK mid-market in 2023 was hindered by the rise in the cost of debt brought on by interest rate increases. Fresh Thinking Advisory expects the financing landscape to be more predictable in 2024, which will make it simpler for lenders to price, structure and covenant their deals, with interest rates stabilising into the summer.
Fresh Thinking Advisory has supported a number of deals over the last three months, including securing acquisition finance for Advantos HVAC Group from Frontier Development Capital, growth capital provided by White Oak for Comtek Network Systems to fund expansion and the recruitment of engineers, and Brew York securing growth capital with Mercia Asset Management.
Oliver Reece concluded: “We expect refinancings will probably continue to rise through 2024 as loans mature and lenders who put facilities in place during the pandemic become less willing to modify and extend. As we move into Spring, the funding market remains strong, with alternative lenders and challenger banks continuing to look for new deals to fund.”
By providing impartial support to businesses when dealing with lenders, Fresh Thinking Advisory assists businesses looking for a wide range of secured and unsecured finance options. The company offers a whole market funding advice service and leverages its knowledge and connections to assist clients in obtaining and renegotiating debt financing.
