Private Credit

European Overview: 2025 Review & 2026 Outlook

January 12, 2026

 

Our continental European & UK offices discuss the activity they saw across the credit spectrum in 2025, as well as their outlook for 2026 across the region.

European Overview: 2025 Review & 2026 Outlook

Josh Shipley, Managing Director and Head of Private Credit for Europe comments; "In a year marked by ongoing economic and geopolitical uncertainty, our European Private Credit Platform saw relatively consistent levels of deal flow across the credit spectrum. The longer-term funding, and flexible solutions that Institutional lenders, like PGIM, are able to offer borrowers have proven valuable to companies looking to mitigate risk and diversify their capital structures.

Whilst we note that the volatility in the wider market environment is likely to persist, we anticipate that demand for institutional financing will remain robust and we hope to see positive momentum as European growth indicators improve."

 

Key Takeways

1

INFRASTRUCTURE INVESTMENT

Increased infrastructure investment activity across a broad spectrum of categories is anticipated across Europe, notably in the areas of renewables and digital infrastructure

2

M&A UPTICK

M&A activity is cautiously expected to increase across the region as borrowers seek to mitigate risk through longer-term funding and more flexible capital solution

3

SPORT FINANCING

The sport sector is anticipated to have a larger appetite for alternative capital providers in 2026 as owners and leagues seek additional financing

"Across Europe, borrowers are increasingly recognising the value that institutional capital brings in terms of stability, flexibility, and diversification. With our pan‑European platform and deep, long‑standing borrower relationships, we deliver tailored financing solutions. We listen and provide financings that position our clients for long‑term, sustainable growth in a constantly evolving geopolitical economic environment."

Tan Vu, Managing Director, Frankfurt and Paris offices

<p>&quot;Across Europe, borrowers are increasingly recognising the value that institutional capital brings in terms of stability, flexibility, and diversification. With our pan‑European platform and deep, long‑standing borrower relationships, we deliver tailored financing solutions. We listen and provide financings that position our clients for long‑term, sustainable growth in a constantly evolving geopolitical economic environment.&quot;</p>

Our Financing Options

Regionl Perspectives

DACH & Nordics

France & Benelux

Iberia

Italy

UK & Ireland

Meet the Teams

Joshua Shipley, CFA
Joshua Shipley, CFA

Managing Director, Europe & UK Corporate Finance

Tan Vu
Tan Vu

Managing Director, Europe & UK Corporate Finance

Ed Jolly
Ed Jolly

Managing Director, Europe & UK Corporate Finance

Donald Campbell
Donald Campbell

Managing Director, Europe & UK Junior Capital

Tolgar Sirvanci, CFA
Tolgar Sirvanci, CFA

Managing Director & Senior Credit Officer

Francesco Ascoli
Francesco Ascoli

Managing Director, Europe & Uk Corporate Finance

Jennifer O’Neill-Mardokh
Jennifer O’Neill-Mardokh

Executive Director, Europe & UK Corporate Finance

Elise Moulinier
Elise Moulinier

Executive Director, Europe & UK Direct Lending

Thomas Krausser
Thomas Krausser

Executive Director, Europe & UK Corporate Finance

Jose Ortiz
Jose Ortiz

Executive Director, Europe & UK Corporate FInance