The European private credit market is set to seize opportunities created by de-globalisation and is primed for faster growth than other markets, according to Moody’s.
In a new report, Moody’s said that de-globalisation is “accelerating calls for capital” as countries push towards greater self-sufficiency and policymakers ease the way, particularly in Europe and the US, but Europe, with its lower growth base, is “primed to grow faster than other markets”.
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“Europe is poised for accelerated growth in private credit, with some calling this a potential turning point as regional markets heed geopolitical challenges that are forcing greater autonomy from the US,” it said.
“The depth of European capital markets has long trailed that of the US primarily because of different regulatory and legal regimes. But with growing political urgency to ramp up spending on critical infrastructure, private credit will increasingly be used to bridge funding gaps.
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“Although the growth in the European private credit markets slowed down in 2024, we expect that the momentum will accelerate growth rates and outstrip the relative pace of the US in the next few years, partly because of Europe’s smaller base and untapped market potential.”
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It comes as firms like Blackstone and Apollo are committing billions to European expansion. Blackstone announced its European Private Credit Fund had raised €2bn (£1.73bn) in July, with the firm telling Bloomberg that it sees a $200bn investment opportunity in European private credit.
