That massive wave of M&A that was supposed to spur private credit deal-making in 2024 didn’t quite reach us. And to top it off there was a migration from private credit financing over to the syndicated loan markets as margins in the tradable loan universe compressed.

But look below the surface and there is plenty to be pleased with (read our 2024 private credit highlights here) as direct lenders found more entry routes into large-cap deals through PIK financing. And the very first European private credit CLO was born (the CLO space tends to operate like London busses — you wait ages for one and then several come along shortly after).

Furthermore, and whisper it quietly, the private credit space has become a little friendlier. Market participants we spoke to said that this trend will likely continue into 2025 as private credit funds and banks increasingly collaborate.