The Blog

Musings on corporate finance, fund raising, capital markets and other matters

Changing Dynamics of Private Debt

2024 started with central banks approaching the peak of interest rates, and the resulting promise of greater stability, despite geopolitical events, such as a 20% surge in oil prices due to tensions in the Middle East, adding an element of uncertainty.  

Below we review the trends affecting banks, private debt funds and public bond markets.

Pedro Tavares, Founder & CEO of Altimapa Capital (left) with Steven D'Ambrosio, CEO of Sandfield Capital (right)
Pedro Tavares, Founder & CEO of Altimapa Capital (left) with Steven D'Ambrosio, CEO of Sandfield Capital (right)

Sandfield Capital, a lendtech company that provides loans to individuals pursuing legal claims, has secured a £20m credit facility via Ampla Finance to enable it to significantly expand its operations. The funding is the first tranche of a £100m fundraise being led by private debt finance specialist Altimapa Capital, which is transforming the way SMEs secure funding by engaging directly with a network of over 600 institutional investors.

The Global Credit Outlook 2024 by S&P Global Ratings highlights how the end of cheap money represents a return to credit fundamentals and liquidity analysis in the face of a higher cost of debt, increased maturities, and slowing economic activity. We present some of the key take-aways for the mid-market.

Picture by Stein Egil Liland (https://www.pexels.com/@therato/)
Picture by Stein Egil Liland (https://www.pexels.com/@therato/)

Small and medium-sized enterprises (SMEs) play a vital role in the economy of Scandinavia, accounting for a significant portion of the region's GDP and employment. However, despite their importance, SMEs in Scandinavia challenges when it comes to funding their operations and growth.