European private debt market hits $200bn in assets

By Daniel Lanyon on 28th November 2018

Alternative Credit

Assets under management are being pushed to new heights as global investors continue a hunt for yield.

European private debt market hits $200bn in assets

Europe-focused private debt funds have reached an all time high, clocking up $200bn in assets under management (AUM), according to data compiled by Preqin.

The number of investors allocating to opportunities in the region has risen to 1,755 as of November 2018, a further survey of investors found.

Almost half (49 per cent) of Europe-focused assets under management within private debt is held by direct lending funds, while distressed debt funds account for 24 per cent of Europe-focused private debt assets under management.

Following a global trend entrenched since 2008, the European private debt universe has exploded in recent years with many investors now seeing it presenting the best opportunities over the next 12 months (within private debt). Forty-seven percent of private debt investors surveyed in June 2018 view Europe as presenting the best opportunities in the next 12 months – the largest proportion for any region.

Tom Carr, Head of Private Debt at Preqin says that Europe is of abiding interest to private debt investors and fund managers alike.

“Although it is a developed credit market with lots of opportunities for investment, it is not as saturated with industry participants as the North American market. This has created ideal circumstances for the industry to grow, and those conditions don’t look likely to abate in the near future.”

“With the majority of investors citing Europe as a continued area of interest, we can expect to see capital keep flowing to the region in the coming months.”

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