In recent research, private credit executives anticipate a rise in competition levels in Europe and their respective regions. The study conducted by Nordic Trustee, affiliated with Ocorian, surveyed executives in the UK, Ireland, Germany, Switzerland, Benelux, the Nordics, and Eastern Europe. Key findings show that 28% consider the European direct lending market highly competitive, while 65% view it as moderately competitive, and 7% perceive limited competition. Professionals from various sectors such as private credit, debt fund management, private equity, and corporates utilizing private credit participated in the study. The research indicates an expected escalation in competition over the next three to five years both at the European and regional levels. The majority (81%) foresee increased competition at the European level, with 14% expecting significant growth. Similarly, 85% anticipate heightened competition in their own region, with 41% predicting substantial increases. The study highlights substantial covenant headroom as the primary competitive factor, ranking above attractive durations and the lowest credit margin. Executives also prioritize high leverage and tailor-made credit structures. Kind regards, Phil. For opting out of future communications from Perception A, click here.
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