Ares tops European direct lender rankings
Ares Management was the most active player in the European direct lending market last year, with 84 deals and a 6.4 per cent market share, according to new rankings published today.
Data from Octus found that Eurazeo came in second with 57 deals and a 4.3 per cent market share, followed by Goldman Sachs Private Credit with 55 deals and a 4.2 market share.
When considering non-corporate facilities such as real estate, the trio also led the overall wider rankings for direct lenders with marginally adjusted market shares of 6.2 per cent, 4.2 per cent and 4.1 per cent, respectively.
Read more: Ares raises record €30bn for European direct lending fund
Goldman Sachs Private Credit was the most active lender for deals over €250m, followed by Blackstone Credit. Arcmont, CVC Credit, and Park Square all ranked joint third.
For deals below €250m, Ares took the top spot, followed by Eurazeo and Barings Private Debt.
The top three firms for ESG-compliant deals – Ares, Eurazeo, and Pemberton – held their positions from the previous quarter.
Deal activity hits record high
The European direct lending market remained resilient last year despite macroeconomic challenges, Octus’ data found, with the number of deals up by a third to 937 – a record high.
Deal activity steadily picked up during the year, with the most activity taking place in the fourth quarter with 296 deals.
However, Octus said that 2024 deals were skewed towards add-ons as private credit faced increased competition from the broadly syndicated market.
Read more: Moody’s tips private credit market for $3tn growth
Average pricing on direct lending deals tightened quarter-on-quarter to an average of 523 bps above the reference rate in the fourth quarter of 2024, while leverage crept up to a high of 6.8x in the same period.
Bolt-on acquisitions were the most popular use of proceeds last year, equating to a 34.6 per cent share of the market. This was followed by buyouts (32.4 per cent) and refinancings (16.6 per cent).
The UK and Ireland remained the largest direct lending market in Europe with a 31.5 per cent share, followed by France and southern Europe.
Read more: What does 2025 have in store for the private credit markets?
