Private credit deal volumes fell by 11.2 per cent in the first half of 2025 compared to the second half of 2024 amid a “challenging macroeconomic environment”, but remained up 10.5 per cent year-on-year, according to a new report.
The findings, from Deloitte’s Private Debt Deals Tracker, show the growth from the first half of 2025 was driven by 421 new deals – 236 in the second quarter and 185 in the first quarter. That’s up from 381 deals in the first half of 2024.
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“Following a promising end to 2024, European deal activity tapered, with volumes declining from 271 deals in Q4 2024 to 185 deals in Q1 2025 – equivalent to a 31.7 per cent decrease,” Deloitte said in its report. “Levels subsequently rebounded in Q2 2025, with 236 deals completed.
“The ongoing quarterly fluctuations reflect a market caught between competing forces: a challenging macroeconomic environment hindering robust M&A activity, but simultaneous pressure on private equity funds to return capital to LPs and private debt managers to deploy dry powder.”
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The UK led in total deals reported in the first half, with 116 transactions, followed by France (94) and Germany (52), while the rest of Europe reported 159 deals in total.
Overall capital deployed was up in 2025 to-date, hitting €48.8bn (£42.4bn) compared to €36.8bn in the first half of 2024. The average deal size reported was €204.9m.
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Technology, media and telecoms, business services, life sciences and healthcare, and financial services dominated the landscape in the first half of 2025, collectively accounting for 79.1 per cent of deals.
