Debt Advisory 2025 Lender Survey

Clearwater surveyed 125 lenders across Europe and the UK to determine what recent macroeconomic, political, and competitive changes in the market mean for borrowers.

The lenders surveyed were spread across banks and debt funds, covering a wide range of ticket sizes and regions, providing a comprehensive view of the European leveraged finance market.

Over the past year, the European leveraged finance market has experienced favourable shifts amid a more stable economic environment, decreasing inflationary pressures, and gradually declining base rates. Competition amongst lenders has also increased, which has only been heightened by the closure of some of the largest direct lending fundraises in history. The resurgence of the broader syndicated loan market has further prompted banks and credit funds to reduce their spreads to remain competitive. The convergence of these factors has compounded optimism and bolstered confidence in the market for the year to come.

Download our Debt Advisory 2025 Lender Survey here

Key highlights

66%

of participants reported debt funds, including new entrants, were the primary source of competitive tension in the market.

80%

of debt funds raised new funds in the last 12 months.

54%

of participants reported a reduction of at least 25bps in margins, with 30% observing a reduction of at least 50bps in margins in the last 12 months.

42%

of debt funds indicated a reduction of at least 25bps in arrangement fees in the last 12 months.

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