But their shrinking share of deals doesn’t mean direct lenders are pulling back from private equity, yet.

The transaction is one of the largest European direct-lending deals this year, sources say.

Discussions at the SuperReturn Private Credit Europe event highlighted a more cautious outlook for the asset class and M&A activity, market participants say private credit is now entering a more complex phase, with investors becoming more selective —

The chair of Partners Group says private credit defaults could double in the next few years.

Europe’s pipeline highlights how laborious deal-making has become.

Goldman Sachs, Jefferies and UBS are mandated to lead syndicated debt for the CHF2.3B buyout of Lonza’s CHI business, according to sources.

The €15.60‑per‑share offer is financed by €4.95B in committed debt, including senior term loans in euros and Polish zloty.

Refinancings grabbed the largest slice of European sponsored loan volume in 2025 at €41.2 billion — though M&A activity ran a close second with €40.1 billion.

What began as competition between banks and private credit has turned into coexistence, as both players seek to remain central to transactions.

Closing is expected in the first half of 2026.

Private equity is looking at the industry, which has AI-related growth potential, but is constrained by the limited number of viable targets.

Modest growth in loan volumes and a healthier mix of new money are expected in 2026, but execution will hinge on M&A and LBO activity.

From a peak of €117B in October last year, the 2028 loan maturity wall has now fallen to €74B, according to LCD.

Leveraged loans delivered a second consecutive year of record volume in 2025, but other metrics underwhelmed in a volatility-punctuated market.

CVC announced the acquisition of Smiths Detection in a Dec. 3 statement, valuing the airport security group at £2B including debt.

The facility will sit alongside the company’s €1.95B refinancing from July.

Sale processes have been halted in Europe, in a fresh indication of the challenges faced by private credit in getting deals over the line.

Many issuers that had delayed refinancing fixed-rate debt have rushed to complete such deals in 2025.