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Partner Ronan Wicks, head of Shearman & Sterling’s European Finance practice, and associate Addison Pierce of the London Finance Group authored an article on direct lending activity in the mid-market space, titled “Brave New World,” that was published by International Financial Law Review on December 15, 2016.
Direct lenders were virtually non-existent in Europe in 2005. In 2015, they raised nearly US$19 billion and held more than US$42 billion in unspent capital. This article focuses on the mid-market space, where banks find themselves increasingly competing with direct lenders for business. The authors examine the principles driving this dynamic, contrasting the pricing and scale advantages held by banks with the flexibility and deal certainty offered by direct lenders.
