European Direct Lending Surpasses North America

Direct lending has become a staple element of the private debt market in both North America and Europe in recent years, providing investors with an alternative risk/return profile compared to more traditional mezzanine or distressed debt opportunities. However, differing regulatory environments between the two regions have proved a boon to Europe-focused direct lending vehicles, and the increase in the market here has been far more rapid than in North America over the past few years.