Claire Coe Smith
Direct lending may be the most popular strategy for private debt investors, but heightened competition for deals means lenders are branching out.
Increasing scrutiny into debt portfolios’ resilience and rapidly changing growth projections will determine the future of mid-market lending activity.
Private debt’s most popular strategy retains a lot of appeal for mid-market investors, but appetite for more innovative structures is growing.
Deals in the Netherlands have climbed steeply in the past five years.
The UK market accounts for almost three out of every 10 transactions across Europe.
Strong economic growth in Poland is creating space for private credit, alongside appetite from family offices and pension funds across the region.
Europe’s strong track record for private credit is cause for celebration, even as increased competition for assets is driving a diversification trend across Europe.
Infrastructure and defence spending pledges set to boost deal volume.
The proportion of deals completed by private credit is up six percentage points – from 39% to 45% – year on year.
The Italian market is maturing fast, with few domestic lenders meaning opportunity for the wider sector.