Number 1 provider of debt funding to UK businesses
The latest report covering UK M&A transaction activity for YTD 2024 published in October, by Experian Market IQ, shows that the value of M&A transactions rose 49% compared to the same period in 2023, however, the volume of transactions fell short, registering the lowest level since 2023. The value is explained by the mega-deals, with small and mid-market activity remaining subdued.
ThinCats has funded the most deals providing funding to support 51 transactions, ahead of other lenders including HSBC (39) and NatWest (24). ThinCats was also the leading debt provider across several regions, including London, South East, South West, Midlands, North West and Scotland. Within the lending space, a rise in the prominence of fintech and alternative lenders was noted.
We continue to see renewed activity within the SME funding space with advisers seeing increasing demand in pipelines across the mid-market space. There is a lot more confidence in the market following the wider economic challenges we saw in the past couple of years, with many businesses also delaying investment decisions. Despite some concerns resulting from the recent Budget Statement, we expect to continue to see increased activity, especially among owner-managed businesses. We are ready to support businesses looking for the next phase of their growth.Amany Attia, CEO, ThinCats
Key drivers for our success in this space include our support for buy and build strategies, helping businesses like Charlton Baker complete 6 acquisitions in the last 11 months, and Ranger Fire services who have just finalised their 7th acquisition following their launch in February 2024.
Additionally, our work with lower mid-market Private Equity houses has seen us fund numerous transactions supporting deals such as Vespa Capital’s investment into Rocksteady Music School and Bay Tree Private Equity’s management buyout of ABL Health Limited.
Our recent survey which polled the views of over 100 corporate finance advisers (prior to the Budget), indicated positivity to activity in the SME funding space, with increased demand in their pipelines. We have, however, subsequently witnessed the first Labour budget in 14 years, which has certainly been met by mixed reactions but we continue to expect a continued increase in activity.
Our commitment to regional investment has been a critical driver of growth, we have seen a record year of origination with £378m lent to SMEs across the UK, and we continue to seek to help many more businesses access the funding they need to thrive.
*ThinCats fiscal year July 2023-June 2024.
