Our main reasons for this view, outlined in greater detail in this paper, are:
- Europe remains a more bank-centric market with less sophisticated capital markets than the US, meaning it remains ripe for further disruption by private credit.
- Europe’s implementation of recent regulatory and banking supervisory standards presents an additional opportunity for private credit to gain additional market share.
- An established local presence across Europe provides access to differentiated deal flow where the competitive dynamics are more in the lender’s favour.
- The perception of the US as a more creditor-friendly jurisdiction than certain Western European markets is an oversimplification, with recovery rates in Europe historically being higher than in the US.
