News

A look inside Pemberton’s AGM 2026: The conversations shaping European private credit. This year, we brought together an unprecedented gathering of LPs from across the globe, including some of the world’s largest allocators, for a day of discussion on the structural drivers behind European mid-market growth and the opportunities ahead. Thank you to everyone who […]

Many private equity sponsors adopted a more selective stance in Q1 2026 amid AI-driven disruption in the software sector and continued geopolitical uncertainty. Yet deal pipelines are building, and our own activity remained strong across the quarter. In this edition of our European Mid-Market Monitor, we examine the evolving dynamics of the software sector and […]

While private credit headlines continue to focus on US market stress, we believe a different story is unfolding in Europe. Our latest Viewpoint takes a data-driven look at the structural drivers and current market conditions that make European private credit a compelling relative value opportunity with a strong growth outlook.

A factual analysis of recent media coverage, the issues driving it, and why the concerns raised are largely specific to US markets. There has been no shortage of headlines on private credit in recent months. As the asset class grows and begins to represent an increasingly meaningful share of broader debt markets, scrutiny is a natural and healthy part of the process. However, understanding where challenges genuinely exist, and where the market remains fundamentally and structurally sound, requires clear distinctions to be drawn between its different parts.

The opening market conditions for 2026 closely mirror those seen at the end of 2025: a market characterised by gradually compressing base rates, sustained borrower demand, and an expanding opportunity set across the mid-market. In 2025, European mid-market enterprise values rose 6.7%, according to Lincoln International’s European Private Market Index, outperforming the FTSE 250 EV […]

Valuations remain an important barometer for LGPS Funds, making now an ideal moment to revisit the strengths of European Private Credit. In our latest paper, we delve into how European mid-market lending can help support inflation-linked cashflows while also serving as a key driver for economic growth. With mid-market companies employing one in six people […]

Private credit capital is moving to Europe. In our latest Viewpoint, we analyse H1 2025 asset allocation data revealing a marked shift toward Europe compared with 2024, a strong indicator of a longer-term trend. Following our first article on Europe’s renewed focus post-US trade policy changes, we now examine what’s driving institutional capital reallocation and […]

As we close Q3 and look ahead to year-end, the European mid-market continues to demonstrate resilience despite broader macroeconomic challenges. M&A volumes in Europe remain steady, with over half of our introductions this quarter tied to sales processes, while refinancings, including Continuation Vehicles, continue to represent a prominent theme. In our quarterly European Mid-Market Monitor, […]

Momentum in M&A and the diverging macro-landscape between the US and Europe reinforces Europe’s investment appeal where we believe better risk-return is available for LPs.

The European mid-market direct lending segment offers a compelling opportunity for investors, demonstrating resilience and outperformance relative to syndicated loans and large-cap direct lending. 

The first quarter of 2025 saw a continued improvement in the quality of new deal introductions, with M&A processes gaining notable momentum and outpacing refinancing and recapitalisation activity. This positive start has established a solid foundation for the second quarter. In our European Mid-Market Monitor, we explore key trends and developments in direct lending and spotlight the technology sector, one of our most active areas in 2024 and an ongoing source of high-quality opportunities. We also provide regional insights from the Benelux market, which remains resilient and active in M&A despite broader global headwinds.

We believe the outlook for European Direct Lending in 2025 is positive. Lower European base rates are expected to support M&A activity, reduce borrowing costs, and drive default rates towards historic lows. This backdrop continues to fuel the systemic transition from traditional bank lending to long-term asset managers backed by pension funds and insurance capital. […]