Deloitte Alternative Lender Deal Tracker coming …

1 DeloitteAlternative LenderDealTracker TheAmericansare coming increasing prevalenceofUSstyle structuresinEuropeQ22015 Forfuturecopiesofthispublication, /dealtrackerWelcometotheeighthissueofthe DeloitteAlternativeLenderDeal ,withwhom Deloitteistrackingprimarymid-marketdeals acrossEuropeinvolving upto 60dealscompleting,representingasignifica ntincreaseof67%in , Alternative lendingisnowalsoincreasinglybecomingasou rceoffundingfor ,19%ofthealternative lendingtransactionswerecompletedwithfami lyandfounderowned ,inthisedition,wearepleasedtoincludethev iewsofseveralseasonedlawyersonthedevelop mentofEuropean(direct) OlgersPartner HeadofNL DebtAdvisoryTel:+31 88 288 6315 FlorisHovinghDirector HeadofAlternative LenderCoverageTel.

2 +44(0)2070074754Q2headlinefiguresQ2 2014Q2 201560dealscompleted2816412 UKGermanyFranceOtherEuropeanUKdealCountR estofEurope dealCountUKdealCountRestofEurope dealCount1620283267% increaseindealflowfrom Q2 15comparedtoQ2 14 Deloitte Alternative Lender deal TrackerThe Americans are coming increasing prevalence of US style structures in EuropeDeloitteAlternativeLenderDealTrack erDeloitteAlternativeLenderDealTrackerLe verageloanmid-markettrends fordirectlendersMoreprivatecompanieshave turned todirectlenderstofinancegrowthDirectLend inglandscapeTheAmericansarecoming increasingprevalence ofUSstylestructuresinEuropeAlternativele nder 101 guideDeloitteDebtAdvisorycredentialsUnlo cktransformationalacquisitionsfor privatelyownedcompaniesResultsfromDeloit te sM&AIndex,Q32015 Alternativelenderscontinuetoincrease ,albeitSeptemberyear todateleverageloanvolumes(byvalue)

3 Expectationsarethatyieldsandunderlyingri skpremiumwillgoupintheUSfollowing againstpendinginterestraterises,havinglo stsignificantgroundtofixed-yieldinghigh- yield Thegreatmigrationofmanagersintodirectlen dingthatwehaveseenoverthelast3yearswills lowdownasmostlargeassetmanagershavenowes tablishedtheirown Alternative Lender deal TrackerThe Americans are coming increasing prevalence of US style structures in Europe3 Deloitte Alternative Lender deal TrackerLeverageloanmid-markettrends fordirectlendersMoreprivatecompanieshave turned todirectlenderstofinancegrowthDirectLend inglandscapeTheAmericansarecoming increasingprevalence

4 OfUSstylestructuresinEuropeAlternativele nder 101 guideDeloitteDebtAdvisorycredentialsUnlo cktransformationalacquisitionsfor privatelyownedcompaniesResultsfromDeloit te sM&AIndex,Q32015 Alternativelenderscontinuetoincrease theirdealflowacrossEuropeDeloitteDebtand CapitalAdvisoryAlternativelendinginactio nWe have seen a rise of Unitranchefinancing in the Netherlands. This instrument has been relatively unknown among Dutch corporates and investors, and primary demand has come from private equity firms that were looking for alternatives to traditional bank-led acquisition facilities.

5 In the first two quarters of 2015, we observed an increased interest in Unitranchefinancing on the Dutch market, and we expect this trend to continue in the coming period. Leverageloanmid-markettrendsfordirectlen dersIncreasingnumbersoffundmanagersaremo vingdowntherisk/pricingscaletotargetthe ,thisterritoryhasbeenmainlypreservedforb anksandafew deploymentandspeedofexecutioncouldresult indirectlenderscompetingmoredirectly ,with 19%ofthealternativelenderdealsnotinvolvi ngamajorityprivateequitysponsorinthelast usingdirectlendingsolutionsprovidedbyalt ernativelenderstoacquirecompanies solutionscancombinedebt,fixedyielding subordinateddebtandminorityequitytoprovi deaone-stopfinancesolutionto.

6 Thehighestlevelsincethehigh Alternative Lender deal TrackerThe Americans are coming increasing prevalence of US style structures in Europe4 Deloitte Alternative Lender deal TrackerLeverageloanmid-markettrends fordirectlendersMoreprivatecompanieshave turned todirectlenderstofinancegrowthDirectLend inglandscapeTheAmericansarecoming increasingprevalence ofUSstylestructuresinEuropeAlternativele nder 101 guideDeloitteDebtAdvisorycredentialsUnlo cktransformationalacquisitionsfor privatelyownedcompaniesResultsfromDeloit te sM&AIndex,Q32015 Alternativelenderscontinuetoincrease theirdealflowacrossEuropeDeloitteDebtand CapitalAdvisoryAlternativelendinginactio nAlternativelendinginaction:Directlender ssupport Chiltern sacquisitionofTheoremClinicalResearchDel oitte Alternative Lender deal TrackerThe Americans are coming increasing prevalence of US style structures in Europe Ourexperiencehasbeenpositive,butitwillve rymuchdepend onyourindividualcircumstances.

7 Nick Thornton, MBAC hairman, ChilternChilternisaglobalcontractresearc horganisation(CRO) thatprovidesclinicaltrialsupporttothepha rmaceuticaland biotechnologyindustriesintheformofoutsou rcedresearch experiencingunprecedentedgrowth,andbecau seofthis, thecompany sgreatestopportunitywasalsoitsgreatest challenge financinggrowthinanenvironmentwhere pharmaandbiotechcompaniesarerealisingthe benefitof tomorrow asNickThornton,Chiltern schairman,puts it, ahigh-touchserviceprovider,withglobalrea chandscale. Chilternhasshowntremendousorganicgrowtho verthelast10years;however,ithasalsopursu edacquisitions ,thecompanymadeaseriesofacquisitions,eac hdesigned toboostitsfunctional,geographicalortechn ological ,acontractresearchorganisation, , weneededmorescaleandrepresentationinNort hAmerica,andthis,combined withTheorem sclinicalanalyticsunit,itsmedicaldevice businessanditstherapeuticexpertiseplaced ittopofourlist.

8 IntheSpringof2015,Chilternenteredahighly contested M& ssuccessin itwas reallyimportantforustobeabletospeakwithc ertainty aboutourabilitytofundthetransaction. Chilterndecidedtotakeadvantageofitslever age capability,ratherthanbringingmoreequityo ntoits balancesheet itmadesensetouseouruntappeddebt capacity available , welookedatboth,withanopenmind, capitalthatanalternativelendingdealoffer edus Chilternisafamilyownedbusinessandrelatio nshipsare importanttousinconductingourbusiness. Thenewclubcomprisesfourmembers Hayfin,ICG, HighbridgeandSankaty who,togetherwithasuper seniorRCFbyLloyds,providedthelargestEuro peanUS dollardenominateddirectlendingfacilityra isedin2015 firepowerandaccesstoUS-basedrelationship s,aregion thatisparticularlyimportantforthehealthc areandlife option,Nickwouldencourageotherbusinesses toactively considerit.

9 5 Deloitte Alternative Lender deal TrackerLeverage loan mid-market trends for direct lendersMoreprivatecompanieshaveturned todirectlenderstofinancegrowthDirectLend inglandscapeTheAmericansarecoming increasingprevalence ofUSstylestructuresinEuropeAlternativele nder 101 guideDeloitteDebtAdvisorycredentialsUnlo cktransformationalacquisitionsfor privatelyownedcompaniesResultsfromDeloit te sM&AIndex,Q32015 Alternativelenderscontinuetoincrease theirdealflowacrossEuropeDeloitteDebtand CapitalAdvisoryAlternativelendinginactio nDirectLendinglandscapeDeloitte Alternative Lender deal TrackerThe Americans are coming increasing prevalence of US style structures in EuropePrivatedebtstrategiesWehaveidentif iedsevendistinctiveprivatedebt strategiesinthemid- Storycredit (Mezzanine/PIK) intheL+450toL+ nichestrategy(mainlynewentrants)orabroad suiteof directlendingproductstocaterforarangeoff inancing 50m 100m 150m 200mDebtsizeNote.

10 Distressedstrategiesareexcludedfromthiso verview2%3%4%5%6%7%8%9%10%11%12%13%14%15 %20% 250m 300mMid-capPrivatePlacementsTraditionals eniordebtUnitrancheStructuredequityMargi n Storycredit UnitrancheGrowthcapital76543216 Deloitte Alternative Lender deal TrackerLeverage loan mid-market trends for direct lendersMoreprivatecompanieshaveturned todirectlenderstofinancegrowthDirectLend inglandscapeTheAmericansarecoming increasingprevalence ofUSstylestructuresinEuropeAlternativele nder 101 guideDeloitteDebtAdvisorycredentialsUnlo cktransformationalacquisitionsfor privatelyownedcompaniesResultsfromDeloit te sM&AIndex.