In the latest ION Influencers Fireside Chat, Marc Chowrimootoo, Portfolio Manager and Co-Head of Direct Lending for Private Credit at Hayfin, discussed why Europe is becoming one of the most attractive markets for private credit investment.

With over 20 years of experience in banking and private credit, including roles at Goldman Sachs, Chowrimootoo provided deep insights into market dynamics, investor sentiment, and the future of private credit strategies.

Key Topics Discussed

1. The Growth of Private Credit in Europe

• The deleveraging of European banks is fueling opportunities for private credit.

• Europe remains structurally distinct compared to the U.S., offering country-specific opportunities due to its regulatory patchwork.

• Hayfin has built a strong local footprint across major European cities, enabling access to deals and better risk management.

2. Investor Shifts from the U.S. to Europe

• Institutional investors are rebalancing portfolios away from U.S.-centric strategies.

• Policy-driven volatility in the U.S. and overexposure to U.S. private equity are accelerating the shift to Europe.

• Investors are increasingly asking about sourcing capabilities, local expertise, and downside protection.

3. Scale and Platform Power

• Scale is becoming critical for managers to succeed:

  • Larger firms attract capital more easily.

  • Scale enables better origination, execution, reporting, and transparency.

• Smaller managers without scale face major challenges in raising capital, managing risk, and meeting regulatory demands.

4. Specialization vs. Integration

• While niche players can build expertise (e.g., in asset-backed lending), integrated platforms with diversified strategies are better positioned.

• Hayfin’s model offers clients a full suite of financing solutions, creating stronger and longer-term relationships.

5. Partnerships with Institutions and Banks

• Hayfin has secured strategic partnerships with Mubadala, AXA, and Samsung Life, reflecting strong alignment of interests.

• Successful partnerships depend on cultural fit, shared philosophy, and regional demand synergies.

6. The Role of Data and Transparency

• The next generation of winners will be those who leverage data effectively.

• Using portfolio insights to improve investment decisions and meet increasing demands for transparency and reporting is essential.

• Automation and analytics are becoming differentiators in private credit.

7. Market Outlook: M&A, Secondaries, and Sponsorless Deals

• M&A activity is rebounding across Europe, with Q3 2025 already showing higher deal flow.

• Expect more sponsor-led deals in 2026, though sponsorless opportunities remain attractive in markets like the UK.

• Private credit secondaries are gaining traction, with steady growth anticipated despite starting from a small base.

Final Takeaway

The fireside chat highlighted a clear message: Europe is at the center of the next phase of growth in private credit. With a unique market structure, increasing investor interest, and the need for scaled, data-driven platforms, European private credit offers compelling opportunities for institutional investors.

As Chowrimootoo summed up, success in this evolving market will come down to local expertise, scale, integrated platforms, and smart use of data—the pillars that separate future winners from the rest.

Link to a recent thought leadership paper published by Marc Chowrimootoo, that includes an in-depth analysis of the current private credit landscape and examples of how these dynamics have shaped Hayfin’s strategies for capital deployment.

Key timestamps:

00:07 Introduction to the Fireside Chat
02:32 The Appeal of European Investment
04:49 Shifts in Investor Focus
08:16 The Importance of Scale in Asset Management
10:58 Challenges of Specialization in Asset Classes
12:47 Strategic Partnerships in Private Credit
17:07 Leveraging Data for Competitive Advantage
20:32 Outlook on Private Credit Strategies
21:34 Market Activity and Future Predictions
22:09 Signs of Increasing Activity
23:20 Trends in Private Credit Secondaries
24:04 Closing Remarks