Financial Investment Firms Specializing in Acquisition and Management of Companies, Typically with High Levels of Leverage
Europe's private credit market is experiencing a surge since the financial crisis. Financial News' sister publication, Private Equity News, is honoring the movers and shakers who have spearheaded its growth.
Clare Dickinson
June 3rd, 2025
The European direct lending market stretches between $500 billion and $1 trillion, demonstrating an impressive recovery post-crisis. Traditionally, the UK was the hub, but regions like France, Germany, the Benelux countries, and southern European nations are gaining prominence.
Institutional investors are allocating more of their portfolios to private credit, a move that has transformed it from a sideline strategy to a core investment. There's also a rising trend towards global strategies, enabling managers to capitalize on relative value across various geographies.
However, managing such strategies requires specialized teams acquainted with the region's intricate legal and tax regimes. On the flip side, this expansion into new territories, such as southern Europe, presents a wealth of opportunities for growth and diversification.
As of 2024, private credit assets under management in Europe reached €0.43 trillion, underscoring the market's growth. Despite the U.S. and Canada dominating the global private credit market, Europe remains a significant player, contributing approximately 20% of capital raised for private credit funds.
Though specific leaders are elusive in our search, the thriving European private credit market is a testament to increased investor interest, the expanding reach of direct lending beyond the UK, and the adoption of advanced global investment strategies.
Investors are increasingly allocating their portfolios to private credit, transforming it from a sideline strategy to a core investment in Europe. This growth can be attributed to the specialized teams that manage these strategies, acquainted with the region's intricate legal and tax regimes, which enable them to capitalize on relative value across various geographies, such as France, Germany, the Benelux countries, and southern European nations.
