European direct lending reached an all-time high in 2Q25, as both a surge in the number of transactions as well as a handful of large-ticket items pushed direct lending volumes to new heights, according to Debtwire‘s 1H25 direct lender rankings report.

Direct lending volumes in Europe amounted to EUR 36.7bn across 305 deals in 2Q25, topping the previous record high of around EUR 35bn across 353 deals seen in 2Q24, according to Debtwire data.

Blockbuster direct lending deals such as Adevinta’s EUR 6.5bn refinancing of its existing EUR 4.5bn unitranche – the largest European direct-lending deal on record – propelled direct-lending volumes in the region in 2Q25 to new heights, even as deal count was slightly lower than in 2Q24.

At 305 transactions, 2Q25 deal count nonetheless was up 17% from 1Q25, and solidly above the average quarterly deal count of 240 transactions seen over the previous four quarters, creating some breathing space for direct lenders to deploy capital after being stymied by a slower M&A market earlier in the year.

Direct lenders likewise seem to have clawed back some ground vis-a-vis the institutional loan and high-yield bond markets, with private credit rebounding even as the latter two markets contracted quarter-on-quarter in 2Q25 after the BSL markets briefly froze in the wake of Liberation Day tariff announcements.

Institutional loan and high-yield bond issuance amounted to around EUR 98.07bn in 2Q25, down slightly from the EUR 101.18bn issued in 2Q24 and well below the record EUR 121.98bn issued in 1Q25.

In terms of sectors, healthcare saw the most action in 2Q25, accounting for around EUR 3bn of direct-lending volumes, followed closely by financial institutions (EUR 2.9bn) and business services (EUR 2.7bn) in terms of volumes.

Among direct lenders, Ares claimed the top spot in Debtwire’s 1H25 European Direct Lender Rankings, registering 25 deals in 1H25 accounting for 7.4% of the market. Blackstone Credit and Goldman Sachs Private Credit followed in second and third place with 21 and 19 deals, respectively, giving Blackstone a market share of 6.21% and Goldman a share of 5.62%.

Including add-on financings, Ares likewise topped the charts in 1H25, with 48 deals giving it a total market share of 9.09%. Goldman Sachs followed in second place with 33 deals and a market share of 6.25%, while Blackstone came in third with 31 deals and a market share of 5.87%.

A different set of funds tops the charts in terms of ESG-linked deals meanwhile, with Eurazeo coming in first with 16 deals giving it a 25.81% share of the ESG market. Pemberton followed in second with eight deals and a 12.9% share of market, while Bpifrance came in third with five ESG-linked deals and a market share of 8.06%.

In the large cap space, Goldman Sachs Private Credit came out ahead with 22 deals and a market share of 21.78%. Blackstone Credit placed second in the large-cap space with 16 deals and a 15.84% market share, followed closely by Ares with 15 large-cap deals and a 14.85% share of the market.

Over in the midmarket, Ares once again leads the rankings, with 20 deals giving it a 19.23% share of the total midcap space. Eurazeo came in second place at 13 deals and a 12.5% share of the midmarket, while Arcmont placed third with nine deals and a market share of 8.65%.

In the small cap space, CVI was a clear frontrunner, with 15 deals accounting for more than a quarter (26.79%) of total activity in the small cap arena. Bright Capital followed in second with six deals giving it a market share of 10.71%, while Fiduciam, Muzinich and Oquendo Capital came in a three-way tie for third place, with each lender accounting for three deals and claiming a market share of 5.36% apiece.

Debtwire’s direct lender rankings highlight the key players in the private debt market. The report contains active direct lender fund rankings, along with market analysis.