If the first half of this year showed the European private credit market reaching a new level of maturity, the third quarter saw it embrace its newfound adulthood — with bigger funds and deals, stronger competition, and an increasingly evident hierarchy.

Dealmaking was relatively steady despite the usual summer slowdown, and lenders wrote larger tickets: the average deal size increased over the past three months, with a renewed focus on large cap borrowers.

Direct lenders continued both collaborating with and catching up to the buoyant syndicated markets in Q3. The result is a highly consolidated and increasingly price-competitive market, with a few lenders dominating both the large cap space and fundraising.

A series of jumbo closings have brought the average size of funds to a new record high. The huge amount of dry powder in the hands of a more concentrated set of large funds will inevitably impact market dynamics.

That doesn't mean there's no space for diversity, however. While some smaller and more recent entrants have struggled under the pressure of competition, there has still been ample room for a variety of lenders to carve out regional and sector-specific specialties, as we will see in the league tables that conclude this report.

The data for this report is collated from public sources, reporting by the 9fin editorial team, and direct submissions from lenders.