Deferred payments

Around 53% of respondents used deferred payments in H1 2023, a small increase from 50% in 2022. Deferrals continue to be used by both buyers and sellers, in both LP-leds and GP-leds, to bridge optical pricing expectations.
Over 50% of respondents had deferrals of less than 40% of the purchase price in H1 2023 compared to 35% for FY 2022. The market for deferrals moved lower towards historical norms, as seller focus shifted from re-allocation to unlocking distributions from private capital portfolios and the implied cost of deferrals increased with interest rates.
Deferral periods shortened in H1 2023 with nearly 90% of the structures shorter than 12 months compared to 27% for FY 2022. This again reflected a shift in seller focus to near-term distributions.

Deferrals across all transaction types. Weighted by transaction value (purchase price plus unfunded) per respondent

Deferrals across all transaction types. Weighted by transaction value (purchase price plus unfunded) per respondent

Deferrals across all transaction types. Weighted by transaction value (purchase price plus unfunded) per respondent

Around 53% of respondents used deferred payments in H1 2023, a small increase from 50% in 2022. Deferrals continue to be used by both buyers and sellers, in both LP-leds and GP-leds, to bridge optical pricing expectations.
Over 50% of respondents had deferrals of less than 40% of the purchase price in H1 2023 compared to 35% for FY 2022. The market for deferrals moved lower towards historical norms, as seller focus shifted from re-allocation to unlocking distributions from private capital portfolios and the implied cost of deferrals increased with interest rates.
Deferral periods shortened in H1 2023 with nearly 90% of the structures shorter than 12 months compared to 27% for FY 2022. This again reflected a shift in seller focus to near-term distributions.

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