Debt Finance 2025 - Law And Practice

1. Market

1.1 Debt Finance Market Performance

2024 saw an improvement in the debt market in France compared to 2023. After a sluggish first half of the year, there was an uptick in activity during the second half, driven in particular by the reduction of interest rates that began early in the second semester. Interestingly, banks also made something of a return to the mid-market segment, an area that in recent years had largely been dominated by debt funds. This shift is also linked to a moderation in valuation multiples, as evidenced by the renewed momentum in secondary and tertiary LBOs.

1.2 Market Players

Local banks are mainly relationship banks for company directors and are mainly present in the small-cap segment. International banks are mainly present in the large-cap segment, where they are involved in club deals or syndicated pools. Mid-cap is the preferred area for private debt funds and alternative lenders.