Report Overview

Europe Private Credit Market – Industry Trends & Forecast Report, 2031

Europe Private Credit Market size was estimated at USD 320 billion in 2024. During the forecast period between 2025 and 2031, Europe Private Credit Market size is projected to grow at a CAGR of 9.8%reaching a value of USD 615.7 billion by 2031. Prominent drivers of Europe Private Credit Market include the rising adoption of private credit across Europe, increasing assets under management, and growing investor demand for alternative financing solutions. Private credit AUM has surged from USD 93 billion in 2013 to USD 505 billion in 2023, reflecting expanding interest from both institutional and wealth investors. Europe Private Credit Market offers borrowers confidentiality, flexibility, speed, and reliability for complex financing needs, while providing investors with attractive yields, higher returns compared to traditional credit, and protection against inflation through floating-rate instruments. Typically, private credit involves privately negotiated loans between corporate borrowers and non-bank lenders, focusing on capital preservation and lending to high-quality, non-cyclical companies with stable cash flows. Research conducted by Nordic Trustee and Ocorian across the UK, Ireland, Germany, Switzerland, Benelux, the Nordics, and Eastern Europe indicates that competition in the sector is expected to rise significantly over the next three to five years, with covenant headroom, attractive durations, and low credit margins being the most critical competitive factors. The ongoing disintermediation of traditional lending continues to open substantial opportunities for private credit managers, although many firms still require robust infrastructure to capitalize on these trends. With over 30 years of expertise, Nordic Trustee provides comprehensive loan agency and trustee services, leveraging proprietary technology and extensive restructuring experience to support issuers, investors, and intermediaries in navigating the increasingly competitive European private credit landscape.

Private Credit – Overview

A private credit refers to loans provided by non-bank lenders, such as private equity firms, asset managers, and hedge funds. It offers businesses flexible financing options, often tailored to specific needs. Unlike traditional bank loans, private credit allows direct negotiations on terms, interest rates, and repayment structures. The market has grown significantly, driven by demand for alternative lending solutions and institutional investor participation. Private credit plays a crucial role in leveraged buyouts, corporate expansions, and restructuring efforts.

Europe Private Credit Market

Growth Drivers

Rising Investor Preferences for Alternative Credit

Rising investor preferences for alternative credit are driving significant growth in Europe Private Credit Market. Private credit has become an increasingly attractive financing solution for both institutional and wealth investors, offering higher yields, portfolio diversification, and protection against inflation through floating-rate instruments. Cross-border direct lending deals are rising across Europe, with around 90% of professionals surveyed reporting increased activity, particularly in the United Kingdom (UK), Ireland, DACH, and Nordic regions. Investors are increasingly allocating capital to private credit to finance infrastructure, technology, and real estate projects, reflecting a strong demand for non-bank financing solutions. Nordic Trustee and Ocorian research highlights that 78% of executives expect the trend toward private credit investment to accelerate over the next three years, driven by growing allocations from private equity firms to fund M&A and buyouts. The increasing adoption of private credit is further supported by fund managers’ focus on capital preservation, lending to high-quality corporates, and offering flexible, tailor-made financing structures. Overall, the growing preference for alternative credit solutions is emerging as a key factor propelling Europe Private Credit Market, creating robust opportunities for both lenders and investors in a competitive and expanding market landscape.

Challenges

Increasing Default Risks across Certain Sectors

Increasing default risks across certain sectors are restraining the growth of Europe Private Credit Market. Rising debt levels in industries, such as construction, retail, and housing, have heightened the potential for borrower defaults, creating caution among lenders and investors. These risks are further amplified by macroeconomic uncertainties, including fluctuating interest rates and geopolitical tensions, which may impact corporate cash flows and repayment capacity. As a result, private credit providers are adopting more stringent credit assessments, covenants, and risk management measures, which can slow deal origination and lending activity. Overall, escalating sector-specific default risks act as a key restraint on the expansion of Europe Private Credit Market.

Impact of Escalating Geopolitical Tensions on Europe Private Credit Market

Escalating geopolitical tensions could significantly impact the growth of Europe Private Credit Market. Heightened political and economic uncertainty may disrupt cross border lending, slow deal activity, and increase borrower risk, prompting lenders to adopt stricter credit assessments. Sectors sensitive to global supply chains, energy prices, and trade policies such as manufacturing, infrastructure, and technology face elevated default risks, which can constrain private credit growth. Investors may also reassess portfolio allocations, favoring safer or shorter duration instruments. Additionally, fluctuating regulatory responses and sanctions in affected regions can complicate lending structures. Overall, geopolitical instability poses a notable challenge to market expansion and investor confidence in Europe Private Credit.

Europe Private Credit Market

Segmental Coverage

Europe Private Credit Market – By Instrument Type

Europe Private Credit Market by instrument type is divided into Direct Lending, Mezzanine Financing, Distressed/Special Situations, Structured Credit, and Unitranche Loans segments. The direct lending segment holds the largest share of Europe Private Credit Market by instrument type. The segment’s leadership position is driven by a rising demand from mid-market companies and private equity sponsors seeking flexible financing solutions outside traditional banking channels. European financial institutions are increasingly expanding their direct lending operations, reflecting the segment’s dominance and growth potential. With fewer regulatory hurdles compared to conventional lending, direct lending offers faster execution, tailored structures, and attractive returns for investors. It has positioned direct lending as the preferred instrument in Europe Private Credit Market, consolidating the segment’s role as the leading growth driver of the market.

Europe Private Credit Market – By Borrower Type

Based on borrower type, Europe Private Credit Market is divided into Small & Medium-sized Enterprises (SMEs), Large Corporates, Real Estate Developers, Infrastructure & Project Financing, and Startups & New-Economy Businesses segments. The SMEs segment accounts for the largest market share of Europe Private Credit Market by borrower type, reflecting the pivotal role these businesses play in the country’s economy. Government-backed credit guarantee programs have been instrumental in facilitating SME access to private loans, mitigating risk for lenders, and encouraging investment. Recent reforms aim to enhance the efficiency and reach of these guarantees, ensuring funds are directed to viable SMEs while monitoring risk exposure. Additionally, international initiatives supporting micro-, small-, and medium-sized enterprises further underscore the growing focus on this segment, solidifying SMEs as the primary driver of growth in Europe Private Credit Market.

Europe Private Credit Market – By End Use

On the basis of end use, Europe Private Credit Market is segmented into Real Estate, Infrastructure (Energy, Transport, and Utilities), Manufacturing & Industrials, Healthcare & Pharmaceuticals, Technology & Startups, and Consumer & Retail.

Europe Private Credit Market – By Country

The in-depth research report on Europe Private Credit Market covers the market in the region’s major countries including Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, and Rest of Europe.

Competitive Landscape

Major players operating in Europe Private Credit Market include Blackstone, Apollo Global Management, Ares Management, KKR & Co. Inc., Bain Capital Credit, Alcentra, BlueBay Asset Management, PIMCO, Ocorian Nordic Trustee, and ICG (Intermediate Capital Group). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2025 - Pimco, a large active bond manager with USD 2 trillion in assets under management, announced its plans to launch its first European private credit fund for retail investors, called the Pimco Diversified Private Credit Fund. Targeting wealthy investors seeking higher yields, the fund will primarily invest in European asset-based credit, including debt backed by inventory or property, representing 70–80% of its portfolio.

Scope of the Report

By Instrument Type

• Direct Lending

• Mezzanine Financing

• Distressed/Special Situations

• Structured Credit

• Unitranche Loans

By Borrower Type

• Small & Medium-sized Enterprises (SMEs)

• Large Corporates

• Real Estate Developers

• Infrastructure & Project Financing

• Startups & New-Economy Businesses

By End Use

• Real Estate

• Infrastructure (Energy, Transport, Utilities)

• Manufacturing & Industrials

• Healthcare & Pharmaceuticals

• Technology & Startups

• Consumer & Retail

By Country

• Germany

• United Kingdom

• Italy

• France

• Spain

• Belgium

• Russia

• The Netherlands

• Rest of Europe

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Europe Private Credit Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Increasing Assets Under Management
         2. Rising Investor Preferences for Alternative Credit
         3. Growing Global Market Share of European Private Credit
      2. Restraints
         1. Increasing Default Risks Across Certain Sectors
         2. Intensifying Competition Among Private Credit Providers
      3. Opportunities
         1. Rising Demand for Non-Bank Financing Solutions
         2. Growing Regional Activity in Key European Markets
      4. Challenges
         1. Macroeconomic Volatility & Geopolitical Risks
         2. Evolving Regulatory & Compliance Requirements
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Europe Private Credit Market, Pricing Analysis
5. Europe Private Credit Market: Marketing Strategies
6. Europe Private Credit Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Instrument Type
         1. Direct Lending
         2. Mezzanine Financing
         3. Distressed/Special Situations
         4. Structured Credit
         5. Unitranche Loans
      2. By Borrower Type
         1. Small & Medium-sized Enterprises (SMEs)
         2. Large Corporates
         3. Real Estate Developers
         4. Infrastructure & Project Financing
         5. Startups & New-Economy Businesses
      3. By End-Use
         1. Real Estate
         2. Infrastructure (Energy, Transport, Utilities)
         3. Manufacturing & Industrials
         4. Healthcare & Pharmaceuticals
         5. Technology & Startups
         6. Consumer & Retail
      4. By Country
         1. Germany
         2. United Kingdom
         3. Italy
         4. France
         5. Spain
         6. Belgium
         7. Russia
         8. The Netherlands
         9. Rest of Europe
7. Germany Private Credit Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Instrument Type
      2. By Borrower Type
      3. By End Use
8. United Kingdom Private Credit Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Instrument Type
      2. By Borrower Type
      3. By End Use
9. Italy Private Credit Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Instrument Type
      2. By Borrower Type
      3. By End Use
10. France Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End Use
11. Spain Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End Use
12. Belgium Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End Use
13. Russia Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End Use
14. The Netherlands Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End Use
15. Rest of Europe Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End Use
16. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Europe Private Credit Market Company Market Share Analysis, 2024
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
17. Impact of Escalating Geopolitical Tensions on Europe Private Credit Market
18. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Blackstone
    2. Apollo Global Management
    3. Ares Management
    4. KKR & Co. Inc.
    5. Bain Capital Credit
    6. Alcentra
    7. BlueBay Asset Management
    8. PIMCO
    9. Ocorian Nordic Trustee
    10. ICG (Intermediate Capital Group)
    11. Other Prominent Players
19. Key Strategic Recommendations
20. Research Methodology
    1.  Qualitative Research
       1.  Primary & Secondary Research
    2.  Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Europe Private Credit Market Segmentation

Figure 2       Europe Private Credit Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Europe Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 5       Europe Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 6       Europe Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 7       Europe Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 8       Europe Private Credit Market Share, By Country, By Value, 2019–2031

Figure 9       Germany Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 10     Germany Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 11     Germany Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 12     Germany Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 13     United Kingdom Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 14     United Kingdom Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 15     United Kingdom Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 16     United Kingdom Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 17     Italy Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 18     Italy Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 19     Italy Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 20     Italy Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 21     France Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 22     France Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 23     France Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 24     France Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 25     Spain Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 26     Spain Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 27     Spain Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 28     Spain Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 29     Belgium Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 30     Belgium Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 31     Belgium Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 32     Belgium Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 33     Russia Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 34     Russia Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 35     Russia Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 36     Russia Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 37     The Netherlands Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 38     The Netherlands Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 39     The Netherlands Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 40     The Netherlands Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

Figure 41     Rest of Europe Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 42     Rest of Europe Private Credit Market Share, By Instrument Type, By Value, 2019–2031

Figure 43     Rest of Europe Private Credit Market Share, By Borrower Type, By Value, 2019–2031

Figure 44     Rest of Europe Private Credit Market Share, By Industry Vertical, By Value, 2019–2031

List of Tables

Table 1        Europe Private Credit Market Size, By Value (USD Million), 2019–2031

Table 2        Europe Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 3        Europe Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 4        Europe Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 5        Europe Private Credit Market Size, By Country, By Value, 2019–2031

Table 6        Germany Private Credit Market Size, By Value (USD Million), 2019–2031

Table 7        Germany Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 8        Germany Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 9        Germany Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 10      United Kingdom Private Credit Market Size, By Value (USD Million), 2019–2031

Table 11      United Kingdom Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 12      United Kingdom Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 13      United Kingdom Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 14      Italy Private Credit Market Size, By Value (USD Million), 2019–2031

Table 15      Italy Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 16      Italy Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 17      Italy Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 18      France Private Credit Market Size, By Value (USD Million), 2019–2031

Table 19      France Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 20      France Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 21      France Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 22      Spain Private Credit Market Size, By Value (USD Million), 2019–2031

Table 23      Spain Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 24      Spain Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 25      Spain Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 26      Belgium Private Credit Market Size, By Value (USD Million), 2019–2031

Table 27      Belgium Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 28      Belgium Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 29      Belgium Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 30      Russia Private Credit Market Size, By Value (USD Million), 2019–2031

Table 31      Russia Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 32      Russia Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 33      Russia Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 34      The Netherlands Private Credit Market Size, By Value (USD Million), 2019–2031

Table 35      The Netherlands Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 36      The Netherlands Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 37      The Netherlands Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 38      Rest of Europe Private Credit Market Size, By Value (USD Million), 2019–2031

Table 39      Rest of Europe Private Credit Market Size, By Instrument Type, By Value, 2019–2031

Table 40      Rest of Europe Private Credit Market Size, By Borrower Type, By Value, 2019–2031

Table 41      Rest of Europe Private Credit Market Size, By Industry Vertical, By Value, 2019–2031

Table 42      Blackstone Company Overview

Table 43      Blackstone Financial Overview

Table 44      Apollo Global Management Company Overview

Table 45      Apollo Global Management Financial Overview

Table 46      Ares Management Company Overview

Table 47      Ares Management Financial Overview

Table 48      KKR & Co. Inc. Company Overview

Table 49      KKR & Co. Inc. Financial Overview

Table 50      Bain Capital Credit Company Overview

Table 51      Bain Capital Credit Financial Overview

Table 52      Alcentra Company Overview

Table 53      Alcentra Financial Overview

Table 54      BlueBay Asset Management Company Overview

Table 55      BlueBay Asset Management Financial Overview

Table 56      PIMCO Company Overview

Table 57      PIMCO Financial Overview

Table 58      Ocorian Nordic Trustee Company Overview

Table 59      Ocorian Nordic Trustee Financial Overview

Table 60      ICG (Intermediate Capital Group) Company Overview

Table 61      ICG (Intermediate Capital Group) Financial Overview