Orrick is delighted to co-sponsor Debtwire's European Distressed Debt Market Outlook 2019. The findings of this year's report are based on survey responses from 80 distressed debt investors and 50 private equity funds. Brexit is cited as the top macroeconomic factor likely to fuel European restructurings in 2019. According to the survey, 97% of distressed debt investors and 100% of private equity fund managers agree that there are no benefits for the UK from Brexit. In the event of a hard or no-deal Brexit, survey respondents cite financial services, manufacturing and automotive as the sectors most likely to be negatively affected.
Despite macroeconomic uncertainty and volatility, distressed debt investors in Europe believe 2019 will prove a tough year for sourcing deals. Over half (54%) of distressed investors in the survey anticipate tougher fundraising conditions in 2019, while only 21% believe they will be easier. 62% of the surveyed distressed debt investors view North America as one of the most attractive regions for distressed opportunities. You can read the full report here.