ThinCats leads the way for non-bank lenders despite a softening in the funding market
Recent research by ThinCats and industry activity reports point to a softening in current funding market activity, however, ThinCats continues to be the leading non-bank provider of funding for M&A transactions.
ThinCats adviser sentiment survey
As part of our ongoing dialogue with the UK’s business finance community, ThinCats regularly asks corporate finance advisers for their views on current activity levels and their outlook for the next six months.
In ThinCats’ latest sentiment research carried out in July, 56% of advisers reported that activity levels were lower compared to 6 months earlier, with 26% reporting higher levels and 18% reporting no change.
Comparing their current business pipelines to 6 months ago, 40% of advisers stated there was less demand, 36% stated there was more demand and 24% stated their pipelines were unchanged.
When asked about different sources of funding, 64% of advisers felt that there was less funding available from banks while 28% felt there was less funding available from non-bank lenders.
Thinking about potential activity in the run up to the next general election, 76% of advisers believed activity levels would increase as business owners looking to exit or reduce their equity holdings bring forward transactions to mitigate any tax changes introduced by a new government.
Read the findings Here
Experian MarketIQ M&A Review H1 2023
Another measure of funding activity, which focuses solely on acquisitions, is the Experian Market IQ M&A review. The latest report covering the first six months of 2023 showed a 23% decline in the volume of UK M&A transactions compared to H1 2022, which chimes with findings from the ThinCats adviser sentiment survey mentioned above.
The perception from the adviser survey that high street banks are providing a smaller proportion of funding is also echoed in the Experian report; in H1 2022 47.6% of the M&A transactions funded by the top 10 lenders were members of the “big 5” group of high street banks. In H1 2023 funding from the “big 5” banks had fallen to 41.5% of transactions amongst the top 10 lenders.
Proportion of top 10 lender transactions funded by Big 5 High Street Banks (HSBs) vs other lenders (Non HSBs)
ThinCats continues to lead the way for non-bank lenders being the second most active lender, just behind HSBC, according to the Experian Market IQ report for the 6 months to June. ThinCats was the most used debt provider in 4 regions – London. the North West, Scotland and East of England – confirming our commitment to supporting businesses right across the UK.
Read the full Experian Report Here
