At Dechert's inaugural Private Credit Summit in London, Dechert's David Miles and Chris Gardner moderated a panel of industry leaders including Neale Broadhead from CVC Credit Partners, Eric Capp from Pemberton Asset Management, Elena Dal Soglio from Goldman Sachs Asset Management, Chloé Lavedrine from Centerbridge Partners and Allan Nielsen from Ares Management on June 25, 2025, to explore the evolving landscape of private credit. Despite the slow-down in overall loan market activity brought on by (amongst other things) tariff-related issues during the early part of the year, the panel was bullish on the European private credit market.
Highlights of the panel's views on current trends and future prospects included:
Muted M&A market: The recent muted state of the M&A market has not had the level of impact on direct lending that some observers may have expected. Panel members commented on:
- Relatively high deployment rates due partly to a shift in focus towards opportunities within existing portfolios, allied to a greater ability to cater to larger deals given the increased scale of many private credit funds.
- The resilience of the European market to the effects of Liberation Day tariffs when compared to the U.S. market.
- Transactions in the mid-market are proving to be more resistant to broader economic and geopolitical factors.
Opportunities for direct lenders: Direct lenders are poised to further grow share across the European market. The panel pointed to a range of opportunities, including:
- Expanding into markets in wider mainland Europe that have been underserved – "wherever opportunities arise, Private Credit will go."
- The growth of asset-based lending (45% year on year for the last decade) and the opportunity for private credit to continue to take market share from retreating banks with strict capital reserve requirements.
- Access to greater institutional capital through leveraging scale and diversified product offerings.
- Partnering with traditional banks in developing platforms to enhance offerings by drawing on expertise and contacts in sourcing deals.
Evergreen vehicles: The panel addressed the increasing popularity of evergreen vehicles and their attractiveness to both LPs and lenders. LPs receive access to private markets and alternative assets while maintaining liquidity; in return, funds can stay invested with lenders without the timing constraints of a closed-ended fund.
Investor demands: The increasing sophistication of LPs over the past decade and how this has influenced private credit strategies and investor relations was also highlighted. The importance of transparency and being a trusted partner remains paramount to LPs, whilst providing bespoke products that are tailored to individual LPs' risk profiles is increasingly important.
Private wealth investors: Discussions focused on the unique benefits offered by private credit, making it an attractive asset class to private wealth investors. Experts noted the attractive risk adjusted returns offered by private credit, supported by the significant downside protection that comes with senior secured loans, with high diversification and appropriate leverage ratios and a track record of being resilient in multiple market downturns.
Contributors
The Dechert moderators would like to thank Fraser Aitken for his contribution to this article.
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