A 71 per cent year-on-year rise in European LBO-related lending has been driven by “opportunistic refinancings, repricings and recapitalisations”, according to debt adviser Marlborough Partners’ Q3 report.

Refinancings accounted for 65 per cent of leveraged buyout-related lending in Q3 2017.

In the UK, LBO lending activity almost doubled on the same 2016. Activity in Germany remained roughly level, but represented a higher proportion of overall lending activity than in previous quarters.

The report also notes that debt funds, which are not as well-established in Germany as in the UK or France, are having their best year to date in the German market. Six out of 20 LBO deals in Germany in Q3 involved debt funds.