Alternative Lenders Continue to Gain Ground in the Netherlands
The rise of alternative lenders, particularly private debt funds, continues to gain momentum in the Dutch financing market. These funds have become serious players, offering attractive benefits such as competitive terms (not only in terms of pricing), swift decision-making, and often higher financing amounts. In the European mid-market, debt funds now account for more than 50% of buyout financing.
For smaller transactions (up to €15 million), there are fewer (foreign) financiers active in the Netherlands. However, this does not mean that suitable financing solutions are unavailable to entrepreneurs. By combining different financiers, successful financing structures can still be achieved. Why are smaller deals less attractive to financiers? Simply put, larger transactions generate higher absolute returns for financiers with a similar level of effort. Additionally, smaller companies often carry higher risks due to greater performance fluctuations. Unlike private equity firms, financiers such as banks and debt funds do not benefit from outliers that can compensate for potential losses, making them more cautious when taking on risk.
Over the past year, YES Corporate Finance has successfully assisted various investors and entrepreneurs in securing financing, including for acquisitions. We have collaborated with both traditional major banks and debt funds, consistently finding tailored solutions for our clients.
