Seven months after a stormy SaaSpocalypse sent lenders scrambling to reassess their exposure, European software deals are pricing around 50bps-75bps wider than before the sell-off, according to 9fin sources.
While some direct lenders have found themselves in need of rebalancing their portfolios away from software, others are seeing an opportunity.
“Previously, when the margins were really low for the best companies, we were not able to compete, we were not able to go that low. Realistically, for us, the fact that margins have gone up means that we can do a few more software deals,” one direct lender said.
“The fact that there’s less competition for SaaS deals means that I can look at higher quality assets and negotiate better terms on them,” said another.
The change has registered in 9fin’s quarterly data, too. Average spreads in European software deals crept up from 475bps in Q2 25 to 537.5bps in Q2 26. That amounts to an extra 62.5bps on the typical software borrower’s debt.
Quarterly medians for European software & services — L2 GICS MSCI.(Source: 9fin data)
Mark Bickerstaffe, co-head of direct lending at Hayfin, said in a recent 9fin podcastthat they too have room to add software...
