Key Takeaways
- • Blackstone has closed on €13bn (£10.9bn) of investable capital for its European direct lending strategy, announced on 4 November 2026 as the final close of the institutional Blackstone European Senior Direct Lending Fund IV (BXDE IV).
- • The €13bn figure spans BXDE IV and other European direct lending vehicles and includes anticipated leverage, according to the firm.
- • Blackstone aims to invest more than $500bn (£372bn) of assets in Europe by 2035, with credit a significant part of that opportunity.
- • The fund targets European borrowers across the size spectrum, with a focus on the middle and upper-middle market.
- • The raise comes as US direct lending has faced redemption pressure over software exposure and loan quality, prompting some investors to view European private credit as a diversifier.
Summary
Blackstone has closed on €13bn (£10.9bn) of investable capital for its European direct lending strategy, as investor interest in private credit on the continent grows. The world's largest alternatives manager announced the final close of its institutional fund, Blackstone European Senior Direct Lending Fund IV (BXDE IV), on Wednesday, 4 November. The €13bn figure spans BXDE IV and other European direct lending vehicles and includes anticipated leverage, the firm said. The fund targets European borrowers across the size spectrum, with a focus on the middle and upper-middle market.
The close comes at a time when direct lending, particularly in the United States, has experienced a difficult period, with some funds facing redemption requests amid concerns over software exposure and loan quality. According to some managers, this has led some investors to look to European private credit as a "diversifier" away from the US, with the European market in vogue over the past two years, a trend that could continue into 2027.
Blackstone said credit is a significant part of its opportunity in Europe, with the firm looking to invest more than $500bn (£372bn) of assets in the region by 2035. Brad Marshall, global head of private credit strategies at Blackstone Credit & Insurance, said: "This fundraise reflects investors' confidence in private credit and our ability to deliver scaled financing across market cycles."
Since the launch of BXDE IV, Blackstone said it has committed capital to European companies, including taking lead lender roles in transactions such as Angelini Pharma's take-private of Catalyst Pharmaceuticals (€1bn), Regnology (€780m), Odevo (€649m) and JTC (€382m). Mike Carruthers, European head of private credit strategies at Blackstone Credit & Insurance, said: "We believe Europe remains one of the most attractive private credit markets globally, with borrowers valuing the certainty, scale and flexibility we provide."
The close comes at a time when direct lending, particularly in the United States, has experienced a difficult period, with some funds facing redemption requests amid concerns over software exposure and loan quality. According to some managers, this has led some investors to look to European private credit as a "diversifier" away from the US, with the European market in vogue over the past two years, a trend that could continue into 2027.
Blackstone said credit is a significant part of its opportunity in Europe, with the firm looking to invest more than $500bn (£372bn) of assets in the region by 2035. Brad Marshall, global head of private credit strategies at Blackstone Credit & Insurance, said: "This fundraise reflects investors' confidence in private credit and our ability to deliver scaled financing across market cycles."
Since the launch of BXDE IV, Blackstone said it has committed capital to European companies, including taking lead lender roles in transactions such as Angelini Pharma's take-private of Catalyst Pharmaceuticals (€1bn), Regnology (€780m), Odevo (€649m) and JTC (€382m). Mike Carruthers, European head of private credit strategies at Blackstone Credit & Insurance, said: "We believe Europe remains one of the most attractive private credit markets globally, with borrowers valuing the certainty, scale and flexibility we provide."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.