European Private Credit Monitor June 2026 (PitchBook)

Summary

• Acquisition-related deals made up 75% of all activity by count YTD, leading estimated volume at €11.7 billion.p.2
• Average and median direct lending spreads fell to 503 bps YTD 2026.p.2
• Software & Data Integration and Business Services share the top spot in deal activity with a 22% deal share each.p.2
• Direct lending estimated volume and deal count YTD trail the same period in 2025 by 35% and 23%, respectively.p.5
• The difference between average BSL and direct lending LBO spreads expanded to 165 bps in YTD 2026.p.16

Key insights

1. Direct lenders funded more than twice as many buyouts by count as syndicated lenders in Europe.p.2
2. The gap between average sponsored leverage in direct lending and broadly syndicated loans narrowed to its tightest level since 2023.p.2
3. Transactions in the €100-349 million category saw their market share by count fall from 57% in 2025 to 50% YTD 2026.p.2
4. Q2 2026 recorded zero sponsor-backed recapitalization transactions, mirroring Q3 2024.p.9
5. Non-sponsored transactions accounted for just 7% of European private credit deal count in Q2 2026.p.26
6. None of the 10 largest European direct lending transactions reported by LCD were originated in 2026.p.38