Key Takeaways
- • Ares ranked first in the Octus 2024 European Direct Lender Rankings with 84 deals and a 6.4 percent market share, followed by Eurazeo (57 deals, 4.3 percent) and Goldman Sachs Private Credit (55 deals, 4.2 percent).
- • European direct lending hit a record 937 deals in FY2024, a 33 percent increase from FY2023, with Q4 the most active quarter at 296 deals.
- • Bolt-on acquisitions led use of proceeds at 34.6 percent, while buyouts rose to 304 deals from 224 in 2023, and unitranche structures made up just over 60 percent of facilities.
- • Average pricing tightened quarter on quarter to 523 bps over the reference rate in Q4 2024, while leverage rose to a high of 6.8x in the same period.
- • Goldman Sachs Private Credit led deals above €250 million with 48 transactions, while Ares led the mid-market segment below €250 million with 58 deals.
Summary
Octus, formerly Reorg, has published its European Direct Lender Rankings for full-year 2024, ranking lenders by sector, region, debt range and ESG compliance. According to the rankings, Ares secured first place with 84 deals and a 6.4 percent market share. Eurazeo placed second with 57 deals (4.3 percent) and Goldman Sachs Private Credit third with 55 deals (4.2 percent). When non-corporate facilities such as real estate are included, the three firms' adjusted market shares were 6.2, 4.2 and 4.1 percent, respectively.
Segmented by debt size, Goldman Sachs Private Credit was the most active lender for deals above €250 million total debt quantum, completing 48 transactions in 2024. Blackstone Credit ranked second with 36 deals, while Arcmont, CVC Credit and Park Square were joint third with 28 deals each. In the mid-market segment below €250 million, Ares led with 58 deals ahead of Eurazeo's 55, and Barings Private Debt held third with 39 deals. In the ESG-compliant rankings, Ares, Eurazeo and Pemberton retained their positions from the previous quarter.
Octus reported that European direct lending remained competitive and resilient despite economic conditions and geopolitical instability. Activity totaled 937 deals in FY2024, a 33 percent increase on FY2023 and the highest on record. Deals were skewed toward add-ons, and private credit faced growing competition from the broadly syndicated market. Mid-market deals accounted for 75.5 percent of activity. Deal flow strengthened through the year, with Q4 the most active quarter at 296 deals, which Octus said supports optimism for 2025 across debt and M&A activity.
Bolt-on acquisitions were the leading use of proceeds at 34.6 percent, followed by buyouts at 32.4 percent. Buyout activity rose to 304 deals from 224 in 2023. Refinancings accounted for 16.6 percent. By region, the UK and Ireland was the largest market at 31.5 percent (295 deals), followed by France at 18.6 percent (174 deals), while southern Europe (14.7 percent, 138 deals) narrowly edged out DACH (14.6 percent, 137 deals). Unitranche structures remained dominant at just over 60 percent of facilities, with senior/stretched tranches at 23.2 percent. Software borrowers led sector activity with 204 deals, followed by business services with 145 and healthcare and life sciences with 135.
Pricing tightened quarter on quarter to an average of 523 bps over the reference rate in Q4 2024, while leverage rose to a high of 6.8x in the same period. The full report is available to Octus subscribers, with a summary accessible to non-subscribers on the Octus website.
Segmented by debt size, Goldman Sachs Private Credit was the most active lender for deals above €250 million total debt quantum, completing 48 transactions in 2024. Blackstone Credit ranked second with 36 deals, while Arcmont, CVC Credit and Park Square were joint third with 28 deals each. In the mid-market segment below €250 million, Ares led with 58 deals ahead of Eurazeo's 55, and Barings Private Debt held third with 39 deals. In the ESG-compliant rankings, Ares, Eurazeo and Pemberton retained their positions from the previous quarter.
Octus reported that European direct lending remained competitive and resilient despite economic conditions and geopolitical instability. Activity totaled 937 deals in FY2024, a 33 percent increase on FY2023 and the highest on record. Deals were skewed toward add-ons, and private credit faced growing competition from the broadly syndicated market. Mid-market deals accounted for 75.5 percent of activity. Deal flow strengthened through the year, with Q4 the most active quarter at 296 deals, which Octus said supports optimism for 2025 across debt and M&A activity.
Bolt-on acquisitions were the leading use of proceeds at 34.6 percent, followed by buyouts at 32.4 percent. Buyout activity rose to 304 deals from 224 in 2023. Refinancings accounted for 16.6 percent. By region, the UK and Ireland was the largest market at 31.5 percent (295 deals), followed by France at 18.6 percent (174 deals), while southern Europe (14.7 percent, 138 deals) narrowly edged out DACH (14.6 percent, 137 deals). Unitranche structures remained dominant at just over 60 percent of facilities, with senior/stretched tranches at 23.2 percent. Software borrowers led sector activity with 204 deals, followed by business services with 145 and healthcare and life sciences with 135.
Pricing tightened quarter on quarter to an average of 523 bps over the reference rate in Q4 2024, while leverage rose to a high of 6.8x in the same period. The full report is available to Octus subscribers, with a summary accessible to non-subscribers on the Octus website.
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