Professional and business services is the leading European direct lending sector so far this year, according to Pitchbook LCD’s latest private credit monitor.

Representing 26 per cent share of the European direct lending market, professional and business services is staying ahead of the technology sector which records a deal share of 20 per cent.

In 2025, technology was the sector with the highest deal making activity.

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Figures also show that the UK is the jurisdiction with the highest deal share so far this year, followed by France. Last year, France held the top spot followed by the UK.

Given the late-summer slowdown, direct lending activity overall has slowed reaching an estimated volume of €7.4bn (£6.3bn) across 31 transactions, says PitchBook LCD’s head of EMEA credit research Taron Wade.

Meanwhile, average direct lending spreads have risen slightly year to date as more borrowers need to widen pricing, but median spreads still show a decline.

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Private credit figures overall continue to lag the 2025 pace, with estimates putting volume and deal count year to date behind those of last year by 30 per cent and 20 per cent, respectively.

In terms of leveraged buy outs, syndicated lenders continue to finance larger deals, with €4bn recorded across three deals, versus direct lending’s €4.3bn from 18 transactions.

Refinancing volumes are also estimated to be down by almost half compared to the same time last year, falling at a higher rate than acquisitions.