Financial Sponsor Series 2021 - Nordic | Mergermarket Group Ltd | 11 March 2021 | Live

In line with global M&A activity, dealmaking in the Nordics saw a solid recovery in 3Q20, after a subdued first half of the year. After M&A was at a standstill following the outbreak of the pandemic, EUR 15.3bn (219 deals) was recorded in Q3, ahead of the first two quarters’ value combined (EUR 9.5bn). This was driven by an increase in large-cap deals, after three deals worth at least EUR 1bn were announced in Q3, versus just one in the first half.

Private equity activity has similarly seen a noticeable uptick in the last three months, jumping to 53 deals worth a combined EUR 9.2bn, representing the highest quarterly value since 4Q18 (EUR 11.1bn) and the highest quarterly volume since 2Q19 (60 deals). With large amounts of dry-powder ready to deploy, private equity activity looks still active throughout the fourth quarter and beyond.

With M&A picking up pace in the second half of the year, one thing is becoming clear – bank clubs are becoming scarcer. Direct lenders have gained ground particularly on speed of execution, with many private equity firms preempting deals and tapping funds for financing to help get ahead of competitors in an overheated market.

While funds have been blazing ahead to deploy, banks have been acting with caution, choosing when to pick their battles and favouring the more lucrative underwriting model.

Alongside a panel of bank and fund lenders, we’ll ask about their pipelines.

Talking points include:

• How do sponsors see the market evolving into 2021?
• What have been the approaches of lenders to corporate stress?
• If a red hot IPO market continues in the Nordics, what impact might this have on exit decisions and secondary buyout activity?
• Will banking consolidation in Nordics affect their ability to compete with institutional lenders?
• What are the attitudes of lenders and sponsors to Nordics tourism and travel?