Spanish Direct Lending Analysis, Opportunity to Expand

Recently, our Head of Spain, Leticia Ruenes wrote an article for Reorg which covers the impacts of Covid-19 on the Spanish economy.

In the article, Leticia explains how Spain is an increasingly attractive market for private debt investors. As the country’s banking sector faces another wave of mergers, we believe direct lenders may have a greater opportunity to expand on the back of the banks’ reduced capacity to cover the mid-market space¹.

As the economy recovers from Covid, we expect the number of Spanish direct lending deals in 2021 to bounce back to 2019 levels, or even higher. Pemberton opened its Madrid office in 2020 to support all our local clients, and Spain is an important part of our strategy to build pan-European portfolios for investors.

Spain is the fifth-largest economy in Europe and the fourth-largest in the Eurozone². Like most of Western Europe, it has been badly affected by the Covid pandemic, and the growth of direct lending stalled in 1H 2020 – though only temporarily in our view.

¹Deloitte Alternative Deal Tracker December 2020
²European Commission

Read the whole article by clicking on the link below.