Blog Post
Data Drop: Healthcare Takes Software’s Spot as European Direct Lending’s Priciest Sector
A year ago, software-related borrowers paid 42 basis points (bps) more than those in healthcare. However, today’s situation has reversed.
According to data from Octus, European healthcare and pharmaceutical margins averaged 571bps in the first nine months of 2026, an increase of 38bps year-over-year. In contrast, software-related margins dropped 51bps to 524bps during the same period. This represents an 89bps swing between the two sectors within just one year. The softness in the tech sector is not isolated; broader TMT margins contracted by 43bps to 491bps, while business services fell by 24bps. Outside of healthcare, the consumer-related sector was the only one to see pricing push upward, rising by 9bps to 507bps.
Beyond sector shifts, a significant divergence is also noticeable between market segments. Large-cap margins compressed to 494bps in Q3’26 (down 22bps year-over-year), while mid-market pricing slipped by 13bps to 546bps. With both segments giving back their Q2 uptick, the mid-market premium has widened to 52bps, up from 42bps a year earlier and well above the 13bps low of Q1’25.
Pricing is moving at different rates across sectors, segments and deal strategies. The headline average only provides a partial view.
Full 9M’26 pricing and leverage benchmarks are available in Private Credit and Deal Origination Insights.
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