BlackRock: Europe’s private credit market to double by 2030

Europe-focused private credit assets under management are expected to more than double to over €800bn (£702.5bn) by the end of the decade, as the asset class becomes an “increasingly pivotal” part of the continent’s economy, according to new research from BlackRock and Preqin.

By the end of 2025, Europe-focused private credit assets under management are forecast to exceed €450bn, with growth driven by companies staying private for longer, structural changes in public markets and an evolving bank lending landscape, the study found.

Across the EU and UK, more than 90 per cent of firms with annual revenue above $100m (£75.9m) are privately held, according to S&P Capital IQ15 data.

“We see the private credit market in Europe expanding further,” said Matthieu Boulanger, head of Europe for private financing solutions at HPS, part of BlackRock. “Private credit is increasingly pivotal to the European economy, providing essential financing for innovative and rapidly growing businesses, as well as small and medium-sized enterprises. As the market continues to evolve, we expect the sector to broaden out to include new borrowers previously served only by public markets.”

BlackRock, which has invested more than €70bn in European private assets, said the region’s alternatives market is expected to exceed €5tn by 2030.

The firm added that European private markets have “bounced back strongly” as declining interest rates and easing inflation boost economic activity and investor sentiment. Western Europe saw the sharpest improvement, with a 12-point rise in the share of investors viewing it as one of the most attractive markets.

BlackRock’s growing presence in private markets follows its acquisitions of Global Infrastructure Partners (GIP) and HPS Investment Partners, as well as its purchase of data provider Preqin.

“With the majority of Europe’s small-to-medium enterprises owned privately, it is essential that these companies can turn to deep pools of capital to fund their future growth,” said Philipp Hildebrand, vice-chairman of BlackRock. “As investor appetite to deploy capital into private assets accelerates, Europe’s capital markets can provide a powerful mechanism for financing a wide range of companies and transformational projects across the region.”

Infrastructure is currently leading the way across European private markets, BlackRock found. The asset class, now the second-largest for private capital in the region, is expected to reach nearly €600bn in AUM by the end of this year and to double again to €1.1tn by 2030.

Fundraising across European private markets is also rebounding, led by private equity and infrastructure. In the first half of 2025, €55.4bn was raised for Europe-based infrastructure funds, already surpassing the total raised in 2024.