European Economic Outlook 

  • Deal activity has proven relatively resilient across Europe with 206 deals completed during Q1 2022, compared to 235 in Q4 2021[i]
  • Against the backdrop of geopolitical turmoil and macroeconomic headwinds, there is now evidence of M&A and related financing activity slowing
  • Since the outbreak of the Russia-Ukraine conflict and escalating inflationary pressures, the public markets were unavailable for meaningful periods during Q1 2022. Although markets are now open, they remain volatile with limited primary issuance
  • This resulted in direct lenders increasing market share and providing capital to credits that would have traditionally had access to a liquid solution
  • We expect uncertainty and caution to pervade financing conditions in the near term, as the current headwinds continue to impact markets. This will make maturity management much more challenging for borrowers and issuers, and we recommend they are on the front foot and prepare with ample time


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(1) April 2022 DC Advisory Lender Survey - DC Advisory’s independent survey of 93 European banks and direct lenders, which was completed in April 2022 and conducted across UK, France, Germany, Austria, Switzerland, Spain, Belgium, Netherlands and Luxembourg (referred to herein as the “The April 2022 DC Advisory Lender Survey” or the “Survey”). Any such data, including league table data referenced herein is limited to the data provided by the Survey participants and is not meant to constitute definitive market data. The banks and lenders selected for the Survey are based on those that are most active in the market, and that DC Advisory interacts with the most. Accordingly, the Survey participants do not constitute an exhaustive list of banks and lenders who may have been active during the period addressed by the Survey.


*All data (unless otherwise stated) in the tables in this piece have been collected via the April 2022 DC Advisory Lender Survey, subject to the limitations of the Survey, please see note (1) for more details.