As we conclude our European private credit series, let’s review what we’ve learned so far:
– Europe suffered a similar Covid slump (and enjoyed a similar rebound) as the US. Yet Europe also retained the country-by-country distinctions they had pre-Covid. The recovery in all capital markets was swift; deal volumes are now at record highs.
– Pricing in the US and across the pond is fairly close. Though European upfront fees are higher, certain credit terms are decidedly more issuer-friendly. Banks have been more aggressive than direct lenders in some locales relative to others.
– Issuers and investors toggled less between US and Europe than pre-Covid, but that could rebalance in the medium-term. Private credit fundraising has been robust, with most capital dedicated to senior and subordinated debt strategies, as well as distressed.