Debtwire launched the 14th edition of the European Distressed Debt Market Outlook today (14 February), produced in association with Greenhill and Orrick.
The findings of the annual survey were the focus of a panel discussion at a breakfast meeting that included Markus Hunold from KKR Credit, Ralf Ackermann from Searchlight Capital, Sandro Patti from Bain Capital, Carlo Bosco from Greenhill and Stephen Philips from Orrick.
Key highlights of the report include:
The majority (65%) of distressed investors believe that market conditions will be as challenging in 2018 as in 2017. Only 34% of those surveyed expect to increase their allocation – down from 59% of respondents in last year’s survey.
Property and construction are expected to provide the best opportunities in 2018 according to 71% of respondents, followed by oil and gas (70%) and transport, including shipping (66%).
Western Europe remains the most attractive region in terms of distressed opportunities, according to 86% of the respondents, followed by Eastern Europe with 58%.
Seventy-one percent of UK-based survey participants do not envision a Brexit-triggered recession over the next two years – however, only 33% of non-UK-based respondents share the same view. Opinions are also mixed over the advantages of Brexit. On the UK-based side, a sizeable proportion (61%) envisages beneifts such as improved trade deals or less bureaucracy and red tape. Meanwhile, a notable majority (75%) of those located outside the country don’t see such advantages.
For the report, Debtwire canvassed the opinions of 80 hedge fund managers, long-only investors and prop desk traders as well as 50 private equity investors in Europe on their expectations for the European distressed debt market in 2018 and beyond.
CLICK HERE to access the report.
