Privately held firms ‘most underserved by private credit’
But they are among the most active market segments in European direct lending, study shows
Around 82% of private credit executives say average loan sizes in Europe have increased in the past 18 months
Privately held companies are the most underserved by the private credit market despite being among the most active market segments in European direct lending, new Nordic Trustee research with executives in the sector shows.
More than half (52%) said privately held mid-market companies were in the top two most underserved market segments while 50% put privately-held large corporates in the top two, the study by Nordic Trustee, part of global capital markets services provider Ocorian found.
Around 44% put companies in cyclical industries in the top two underserved segments ahead of 30% selecting publicly-held corporates and 22% choosing sponsor-backed corporates in the study with executives across the UK and Ireland, Germany, Switzerland, Benelux, the Nordics and Eastern Europe.
Just 2% combined put infrastructure and project finance in the top two underserved market segments, the research with professionals working across private credit and debt fund management private equity and corporates using private credit as a source of funding and for debt advisory firms shows.
However, the study found they ranked privately held mid-market companies and privately held large corporates at one and three when asked to say which segments were the most active in European direct lending. Infrastructure was ranked second with project finance ranked fourth.
Publicly listed companies, sponsor backed corporates and companies in cyclical industries were fifth, sixth and seventh, respectively.
The Nordic Trustee study found 82% questioned said average loan sizes have increased in the past 18 months across Europe with nearly half (49%) saying average loan sizes have increased by 10% or more over the period.
Just 11% reported that average loan sizes had fallen in Europe over the past 18 months with 7% estimating loan sizes were unchanged.
Cato Holmsen, Global Head of Capital Markets at Ocorian and CEO, Nordic Trustee, said: “Privately-held companies are among the most active market segments in European direct lending and yet executives believe they are the most underserved.
“Rising loan sizes over the past 18 months might seem to indicate that private credit providers are focusing more on bigger deals and not addressing strong demand from privately-held companies.
“However the mid-market privately-held sector is clearly seen as the most underserved despite also being seen as the most active highlighting a potential market opportunity.”
With over 30 years’ expertise in the bond and loan markets and a track record of facilitating 14,000 transactions over the years, Nordic Trustee brings an unparalleled depth of knowledge to support bond and loan transactions in the UK and Europe.
It differentiates itself through its proprietary technology, extensive restructuring expertise which includes more than 450 restructurings and 2,000 noteholder meetings, and a problem-solving approach that streamlines complex transactions for issuers and investors alike. Nordic Trustee is committed to delivering best-in-class trustee and loan agency services tailored to the needs of issuers, investors, and intermediaries.
*In March 2025 Ocorian commissioned independent research company PureProfile to interview 210 private credit professionals working across private credit and debt fund management investing in private debt, private equity using private credit, borrowers using private credit as a source of funding, and debt advisory. Respondents were based in the UK and Ireland, Germany, Switzerland, Benelux, the Nordics and Eastern Europe
About Nordic Trustee
Nordic Trustee is the leading and most experienced provider of bond trustee and loan agency services in Northern Europe, with offices in Oslo, Stockholm, Copenhagen, Helsinki, Frankfurt and London. We have over 3,000 active assignments in the non-bank lending sector for more than 850 issuers/lenders from 30 countries.
Nordic Trustee is also a provider of high-quality bond market data through its subsidiaries Stamdata and Nordic Bond Pricing. Data includes detailed reference data, price and index information on all Nordic debt securities issued by the public sector, financial institutions and corporates. Since October 2021, Nordic Trustee is part of Ocorian group.
About Ocorian
Ocorian is a global leader in fund services, corporate and trust services, capital markets, and regulatory and compliance support.
Unlocking new value for its clients across jurisdictions and service lines is Ocorian’s priority; it manages over 17,000 structures on behalf of 8,000+ clients including financial institutions, large-scale international organisations, and high-net-worth individuals.
Ocorian provides fully compliant, tailored solutions that are individual to clients’ needs, no matter where in the world they hold financial interests, or however they are structured.
The group offers a full suite of corporate, fund and private client services across a network of offices spanning all the world’s financial hubs. Locations include Bermuda, BVI, Cayman, Denmark, Finland, Germany, Guernsey, Hong Kong, Ireland, Isle of Man, Jersey, Luxembourg, Mauritius, Netherlands, Norway, Singapore, Sweden, UAE, the UK, and the US.
To find out more about Ocorian and its services, including regulatory information, visit www.ocorian.com