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.
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.
“With a dedicated European team spread across key geographies, Clearwater represents a valuable observatory of trends and dynamics within the European credit market. In 2024, we further expanded our debt advisory presence, with new specialist teams now operating in Sweden, Denmark, Finland, and Ireland. Over the course of the last year, we have successfully completed 68 debt advisory transactions across Europe. As we move into 2025, the deal pipeline remains robust, driven by a strengthening M&A market, increasing demand for funding, and improving credit appetite from lenders.”
Michele Castiglioni, Associate Partner and Head of Debt Advisory, Italy
Transactions
Not just numbers on a balance sheet, our transactions represent over 20 years’ commitment to our clients’ future. Helping them change the game. Even before it was ready to be changed.
Reperimento di risorse finanziarie a supporto di un fondo di private equity statunitense per l’acquisizione di un primario produttore italiano di sughi per pasta e conserve vegetali
Advisor di Platinum Equity nel reperimento delle risorse finanziarie per il completamento dell’acquisizione di Fratelli Polli
Raccolta di fondi per sostenere e promuovere la crescita di Next Different: la prima realtà indipendente leader in Italia nel settore del marketing digitale
Advisor di Gruppo SAE per la raccolta di fondi finalizzata al completamento dell'acquisizione di Next14 e Different
Private equity rileva la maggioranza di un’eccellenza italiana leader nella produzione, distribuzione e vendita di gnocchi di patate di alta gamma
Adviser Finanziario di Hyle Capital Partners SGR nell’acquisizione di una quota di maggioranza in Ciemme Alimentari
Primario operatore di servizi di manutenzione per le infrastrutture acquisito da fondi di private equity attraverso un finanziamento strutturato, con l’obiettivo di accelerarne la crescita
Adviser a Eurizon ed Ersel nel reperimento di risorse finanziarie per l’acquisizione di Tecnofer
Clearwater’s European Debt Advisory team has over 35 experienced professionals completing over 68 transactions this year. These transactions range across primary debt raises, acquisition finance, refinances, amendments and restructurings for a wide range of borrowers, providing accurate and up-to-the-minute market intelligence.
Debt Advisory Lead
Michele Castiglioni
Associate Partner
Our European Debt Advisory team
Manuela Scheibe
Partner and Nordic Head of Debt Advisory +46 76 722 51 00 manuela.scheibe@clearwatercf.com Connect
