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European Private Credit Data Review Q3 25 — Stable pricing, lagging M&A
Devin McGinley
+Synne Johnsson
+ 1 more
•10 min read
European private credit fared well through Q3 25 and the usual summer slump, keeping deal count and median deal size steady year-on-year, despite an overall slowdown and debt funds surrendering market share to banks compared to Q2.
With August’s holiday break, it’s only natural that the number of deals was down quarter-on-quarter. Q3 saw 196 private credit deals completed, down from 231 in Q2, but only one deal less than Q3 2024.
The median deal size was also down slightly, €100m in the third quarter compared to €111m in Q2. However, year-on-year, the median remained stable.
Looking at the quarterly data, it’s clear that the muted M&A market and an aggressive syndicated market continued to put pressure on margins and terms, with median private credit spread remaining below 500bps in Q3.
In terms of sector and geographies, the UK and France remained the most active countries, while IT was the most active sector for the fifth quarter in a row.
