Houlihan Lokey Increases Focus on Accessing Alternative Sources of Funding for European Clients

Europe On The Globe

Houlihan Lokey is expanding its capital markets advisory business in Europe in order to assist companies to access funding outside of the traditional bank and bond markets.

The firm recently brought in Ken Goldsbrough from Greenhill & Co. as a Managing Director in its Capital Markets Group to oversee its capital markets services in the region.

'There is currently a sizeable opportunity for alternative lenders to deploy capital, as traditional providers continue to be constrained by changing regulatory regimes. Independent advisors like Houlihan Lokey can access this growing universe of new capital sources and find the best possible deal for potential borrowers. Ken has the skills and experience to help us fill this role with great competence', said David Preiser, Chairman of Houlihan Lokey (Europe) Limited.

Demand for alternative sources of financing has steadily increasedas banks reduce their lending activity in the face of challenged funding markets and increased regulatory capital requirements. Diversification of funding sources has become the mantra of CFOs and corporate treasurers alike.

Houlihan Lokey is well positioned to help European borrowers tap the conventional and growing alternative financing markets, which would include the increasing number of direct lending and credit funds being established in the region. In addition, the U.S. debt markets (both public and private) currently provide an attractive source of funding for European corporates, offering liquidity and competitive pricing. As a U.S.-headquartered investment bank, Houlihan Lokey is able to provide a bridge for its European clients to these markets.

In addition, the firm’s capital markets activities are expected to increase as the significant level of debt put in place during the boom time of 2005-2007 reaches maturity. According to Standard & Poor’s, almost €200 billion of non-investment grade debt is expected to mature across Europe in the next three years, which provides a significant opportunity for the alternative lending community.

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