The European private credit market is a “fast-growing market” with “the potential to rival its US counterpart”, according to a new report by asset manager Apollo.
In its report, the firm said it has found that geopolitical and macro shifts are expected to drive higher growth in Europe, fuelled by fiscal easing and increased spending in areas like infrastructure and defence.
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“In addition, growing concerns about the erosion of ‘American exceptionalism’ may position Europe as a credible alternative to the US as a destination for cross-border capital flows,” it added.
It also said that growing support for capital markets reform in the Eurozone is creating new opportunities for asset-backed finance, which is a key funding tool for asset-intensive business models.
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“At Apollo, we believe European private credit is poised to lead the next leg of growth in the asset class – offering the potential for diversification, scale, and attractive risk-adjusted returns,” the firm said in its report.
“For investors already allocated to US private credit, Europe presents the prospect not just for geographic diversification but also access to a market that has the potential to rival its US counterpart.”
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