SWEDEN Law and Practice Contributed by: Magnus Wennerhorn and Victor Bengtson, Linklaters
Linklaters PO Box 7833
S-103 98 Stockholm Jakbosbergsgatan 24 Sweden Tel: +46 8 665 66 00 Email: sandra.eriksson@linklaters.com Web: www.linklaters.com
1. Market 1.1 Major Lender-Side Players
In recent years, the debt funds have significantly increased their market share. 1.2 Corporates and LBOs Swedish corporates and the LBO market are marked by steady activity supported by a robust private equity presence. • Corporates: large Swedish industrials (eg, ABB, Essity, Volvo) and tech companies often rely on traditional bank funding and occasion- ally accessing the bond market. • LBOs: Sweden serves as a significant hub for private equity, with several global PE firms and Nordic-based firms (eg, EQT, Nordic Capital, Triton and Altor) active in the market. LBO financing typically combines senior loans (often syndicated), super senior revolving credit facilities, and, in larger deals, high-yield bonds or mezzanine tranches. Recent years have seen a rise in unitranche facilities as a more streamlined alternative. • The market has been resilient, though it can be sensitive to fluctuations in interest rates and lending conditions. At the beginning of 2025, the tariff war sparked high volatility on the market; the M&A market became qui- eter while analysing the effects and the debt capital market froze for a while. Still, many corporates have surplus cash and PE funds
The Swedish leveraged finance market features a mix of local banks, international banks, direct lenders, and debt funds, but the balance varies depending on the transaction. • Local banks: the major Nordic banks, such as Nordea, SEB, Swedbank, Danske Bank and DNB, dominate traditional leveraged lend- ing. They are particularly present in the small and middle-market leveraged buyouts (LBOs) where relationships are crucial. • International banks: large global players, like Deutsche Bank, Morgan Stanley, Goldman Sachs, are more involved in larger or cross- border transactions and high-profile LBOs. • Direct lenders and debt funds: these have grown significantly in the past decade, especially for deals that fall below the radar of larger syndicated loan markets or banks. Funds like Ares, Blackstone and Bridgepoint play an increasing role in providing unitranche solutions, offering greater flexibility for bor- rowers. In summary, in the Swedish market all lender types are active, and local banks enjoy a particu- larly entrenched position in smaller transactions.
461 CHAMBERS.COM
Powered by FlippingBook