European Distressed Debt Market Outlook 2019

28 February 2019

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We are pleased to present the 15th edition of the European Distressed Debt Market Outlook, produced in association with THM Partners and Orrick.

For the report, Debtwire canvassed the opinions of 80 distressed investors and 50 private equity funds in Europe on their expectations for the European distressed debt market in 2019 and beyond.

Key findings include:

  • Brexit is the most commonly cited macroeconomic factor likely to drive a European restructuring wave in 2019
  • In the event of a hard or no-deal Brexit, respondents cite financial services, manufacturing and automotive as the sectors most likely to be negatively affected. Respondents also believe that Ireland and Benelux are the EU regions that would be most negatively affected by a no-deal situation.
  • 44% of private equity respondents believe that over a quarter of their portfolio companies will be negatively affected by Brexit
  • Over half (54%) of distressed investors in the survey anticipate tougher fundraising conditions in 2019, while only 21% believe they will be easier.
  • 62% of distressed investors cite North America as one of the most attractive regions in terms of distressed opportunities