{
  "id": 3044775,
  "title": "European private credit booms as private equity firms are forced to refinance",
  "url": "https://urgent.news/2026/08/24/european-private-credit-booms-as-private-equity-firms-are-forced-to",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-24T15:01:08.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/european-private-credit-booms-as-private-equity-firms-are-forced-to-refinance/"
  },
  "original_language": "en",
  "account": "European private credit firms experienced a record-high in lending during the first half of the year, reaching a significant €63.2 billion, according to new data from Debtwire. This surge was primarily due to private equity firms postponing sale processes and renegotiating debt for their portfolio companies as a result of a lack of exit opportunities. In comparison, the previous year saw only around €40 billion in deals. Patrick Costello, an EMEA private credit analyst at Debtwire, stated that the shortage of exit prospects, especially for private equity-backed companies, led to lenders and sponsors pushing maturities out with refinancing. The majority of refinancing activity took place in the first quarter, with private credit firms lending approximately €34.8 billion. However, lending by non-banks surged dramatically in recent years due to traditional banks distancing themselves from issuing loans to higher-risk businesses. In the second quarter, lending from non-banks dropped by 25% year on year to €28.4 billion, primarily because of a decline in M&A activity. As a result, large firms opted to secure cheaper debt by tapping public debt markets instead of private credit. This shift in borrowing behavior forced private credit firms to focus on smaller mid-market deals, as competition with public debt markets is less intense in this segment. Among the leading direct lenders, Ares Management led with 31 new deals, accounting for 7.8% of the market, followed by Arcmont with 23 deals (5.7% of the market), and Apollo with 20 deals.",
  "summary": "Lending by European private credit firms hit a record-high in the first half of the year as a subdued dealmaking environment forced private equity firms to pause sale processes and renegotiate their portfolio companies’ debt, new data suggests. The value of direct lending across the continent hit €63.2bn (£54.1bn) in the first six months of [...]",
  "key_points": [
    "European private credit lending reached €63.2 billion in H1 2023, a record high.",
    "Private equity firms delayed sales and renegotiated debt due to lack of exit opportunities.",
    "Non-bank lenders saw a 25% drop in Q2 2023 lending, shifting to public debt markets."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}