European Private Credit Market Expands 31% as Regulatory Changes Drive Growth

European private credit surges 31% to €450B as regulatory tailwinds and institutional adoption accelerate market expansion across key jurisdictions.

The European private credit market has experienced remarkable growth, expanding 31% year-over-year to reach €450 billion in assets under management, driven by regulatory changes and increased institutional adoption.

Key growth drivers include:
– Brexit-related banking regulation changes
– Solvency II modifications favoring private assets
– ECB monetary policy supporting alternative lending
– Increased cross-border deal activity

The expansion has been particularly pronounced in:
– Germany: €120B (+28% YoY)
– France: €95B (+35% YoY)
– UK: €180B (+29% YoY)
– Nordics: €55B (+42% YoY)

European borrowers are increasingly turning to private credit for financing needs, with average deal sizes growing from €75M to €125M over the past 18 months. The market is expected to reach €600B by 2026 according to industry forecasts.