European jurisdictions saw a 17 per cent increase in unitranche deals in 2025, compared to the year prior, with the UK in particular recording a strong final quarter result, according to the latest research by investment bank Houlihan Lokey.
Its MidCapMonitor report for the last quarter of 2025, shows 570 unitranche deals were completed throughout the year, with 166 closed in the last quarter.
The report provides an overview of mid-market European private equity-sponsored debt financing activity across the UK, Germany, France, Spain, Benelux, Italy and the Alpine and Nordic regions.
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“Private credit, in particular, has maintained a strong market share across key jurisdictions, reflecting its established role as a core financing partner to sponsors,” said Patrick Schoennagel, managing director and co-head of the bank’s capital solutions arm. “With capital readily available and deal pipelines building, we expect this momentum to continue throughout 2026, supported by resilient sectors and well-structured opportunities.”
The UK, Germany and France were flagged for their rebounds in activity, with deal volumes rising by 60 per cent, 33 per cent, and 18 per cent, respectively, between the third and fourth quarter of the year.
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Debt funds retained a leading market position on a full-year basis, sponsoring 71 per cent of deals in the UK, 57 per cent in Germany, and 77 per cent in the Benelux.
“The sharp increase in add-on financings underscores the sustained focus on buy-and-build strategies, with debt funds remaining highly active and competitive, while maintaining discipline on terms and credit quality,” said Thorsten Weber, managing director and head of sponsor finance, DACH, in Houlihan Lokey’s capital solutions group.
