DENMARK Law and Practice Contributed by: Morten Krogsgaard and Lennart Meyer Østenfjeld, Moalem Weitemeyer
Moalem Weitemeyer Amaliegade 3 DK-1256 Copenhagen Denmark Tel: +45 30 37 96 91 Email: morten.krogsgaard@moalemweitemeyer.com Web: www.moalemweitemeyer.com
1. Market 1.1 Major Lender-Side Players
financing needs. For larger transactions, inter- national banks play an important role by offering substantial capital, including other currencies and global expertise. Direct Lenders Direct lenders and debt funds, most of which are non-domestic, have become increasingly signifi- cant, particularly in providing alternative financ- ing options when traditional bank financing is less accessible. They offer competitive terms and innovative financing structures, catering to the diverse needs of borrowers. Direct lending from Danish institutional inves- tors for acquisition finance purposes has been scarce for many years. Other Players The Nordic high-yield bond market has occa- sionally been utilised as an acquisition finance tool, with a small number of arrangers active in the Danish market. Issuances are typically under Norwegian or Swedish international securities identification numbers (ISINs). Peer-to-peer structures or similar are not con- sidered part of the acquisition finance market.
Local banks, international banks, direct lend- ers and debt funds each play a crucial role in shaping the acquisition finance landscape. The Danish market remains robust, competitive and capable of supporting acquisitions, business activities and growth opportunities. Local Banks The acquisition finance market for domestic companies and SMEs is dominated by local banks and Nordic banks, with the three largest banks playing a predominant role, especially in private equity-backed transactions. Clubs of domestic banks are capable of handling most transactions in the Danish market. Regional banks are also active in the acquisition finance market, which is pivotal for SME bilateral transactions. They leverage their deep relation- ships and local market knowledge to provide flexible and accessible financing solutions. International Banks In addition to the Nordic banks, international banks are present (a small handful even with physical presence). They support a strong base of corporate clients, including their acquisition
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