Blog Post
Data Drop: European Direct Lending Activity Rises 3% YoY as Buyouts Gain Ground
Europe’s private credit market picked up momentum through the third quarter of 2026 as deal flow and M&A activity accelerated. A total of 798 direct lending deals closed in the first nine months – a 3% increase compared to the previous year. In the third quarter alone, the volume rose to 288 transactions, up from 271 in the second quarter.
The increase in activity has improved sentiment among some market participants, with lenders reporting stronger pipelines following the summer. However, overall M&A volumes remain insufficient to absorb the capital available for deployment, and completed transactions have been concentrated on bolt-on acquisitions and refinancings.
Bolt-on acquisitions represented the largest share of activity, accounting for 31.1% in the first nine months of 2026. Buyouts followed closely with 29.6% of total share, while refinancings took a 20.7% share. Notably, buyouts gained ground across the European leveraged buyout landscape, with the number of completed transactions rising to 236 in 9M’2026, compared to 216 during the same period last year.
This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.