Squire Patton Boggs Global Head of Private Credit and Direct Lending Gabriel Yomi Dabiri spoke to Octus for its latest EMEA Private Credit Review.
There has been a growing number of mid-market direct lenders entering the European market, despite many market participants complaining about lackluster deal flow after the summer break. "Direct lending is already growing faster in the U.K. and Europe than in the U.S., and I expect that trend to accelerate, especially in Europe," commented Yomi Dabiri.
"Given that private credit, like any form of corporate lending, will inevitably involve some need for restructuring over time, confidence in enforcement mechanisms is key to sustaining lender interest," said Yomi Dabiri.
There has also been a growing level of bifurcation across different strategies and different asset classes this year. "There's more scrutiny on software-sector deals, for reasons that have been widely reported, and more interest in tangible asset lending - asset-based lending, infrastructure and credit secondaries, which is seeing renewed interest," according to Yomi Dabiri.
