After a slow(ish) start to the year, LBOs seem to be back on the menu in European private credit. However, competition is high, with dry powder in private equity and private credit hungrily chasing these opportunities.

Renewed activity from banks, not just in the broadly syndicated loan (BSL) space but also from bank club lenders is heaping pressure on private credit pricing and loosening its terms — the key area where private credit has an advantage over a traditional bank club.