Debtwire Private Credit Forum Europe 2026

location_on The Peninsula, London Map
17 Jun

Europe large-cap private credit - Chasing size in a tighter market

The large-cap direct lending sector is poised to continue growing as private credit evolves beyond its middle-market roots. Yet this growth brings challenges including intensified competition with banks and margin compression pushing private credit lenders out of the biggest deals, leaving many with idle capital and a growing need to rebalance and deploy dry powder. At the same time, allocators are demanding clearer performance transparency and earlier indicators of signs of stress as credit strain emerges in pockets of the market. With successful exits for large-cap assets becoming harder to achieve amid persistent valuation gaps, a structural shortage of attractive large-cap M&A opportunities is forcing major lenders to look further down-market and diversify into smaller transactions. 

  • With banks reclaiming the upper end of the market, how are large-cap direct lenders defending their position against the BSL market? 
  • What sort of mid-market assets are typically large-cap investors looking towards as alternative investment opportunities? 
  • As Payment-in-Kind (PIK) usage rises amid cash-flow pressure and tighter refinancing windows, does this represent healthy lender flexibility or early warnings signs of mounting credit stress? 
  • From NAV lending to GP-led solutions, how are lenders adapting their underwriting to capture opportunity while mitigating risk?