European Credit Markets Outlook

Europe Turns to Direct Lending, Emerging Markets for Opportunities

Direct lending has emerged as a key strategy in European credit markets. With more choice for borrowers in financing their deals, lenders are looking at opportunities abroad, and regulatory scrutiny is top of mind. Offering key insights into these dynamics and more, this info sheet explores:

• European reliance on direct lending
• Opportunities in emerging markets
• Market share movement from commercial banks to direct lenders
• Impacts of retention rules on middle-market collateralized loan obligations (CLO) formation
• Looser covenants on private credit deals

All of these insights are drawn from the proprietary findings of our full 2025 Credit Markets Outlook. The study is based on a survey of 150 senior executives from alternative asset management firms in the United States and Europe conducted in collaboration with Debtwire.

Download the infosheet now.

For additional insights centered on the U.S., download the companion info sheet: U.S. Credit Markets Outlook: Private Credit’s Appeal Amid BSL Competition and Loosening Covenants