Direct lending in Europe: 798 deals in 2026

European direct lending closed 798 deals in the first nine months of 2026, 3% more than a year earlier, according to Octus data published on 15 October 2026. It is a market growing steadily rather than setting records. Here is what the data says, how deals break down, and what a private investor in Spain can learn from it.

This text is educational. It is not investment advice.

Direct lending in Europe: what the 2026 data shows

Direct lending means private debt managers lending to companies without going through a bank. Octus, which tracks European deals, counts 288 transactions in the third quarter of 2026, up from 271 in the second. So far this year the total is 798, 3% above the same period of 2025.

Activity does not rely on a single deal type. The mix was as follows:

Buyouts rose from 216 to 236 between the first nine months of 2025 and 2026. Octus adds an important caveat: overall M&A volume is still too low to absorb all the capital available to lend.

In plain terms, there is more money waiting than deals to place it in. That tension tends to squeeze margins and, at times, the quality of structures.

Why this matters in Spain

Spain is not a separate market. The same managers and the same capital move across Europe. If there is surplus capital on the continent, mid-market and smaller-company deals become more attractive to lenders.

Spanish figures point the same way. Earlier this month the first Deloitte and SpainCap tracker for Spain counted a record 71 private debt deals in 2025, with 63% involving companies with EBITDA below EUR 20 million. If you are new to the topic, start with our guide to alternative mortgage lending in Spain.

The difference from corporate direct lending is collateral. In property-backed debt a real asset supports the loan, which is not the case for a company loan based only on cash flow. That security mitigates risk but does not remove it.

Trends: what is happening worldwide and in Spain

• Europe, 15 October 2026: Octus reports 798 direct lending deals in nine months (+3%), with more buyouts and capital still outstripping available deals.
• Worldwide, 13 October 2026: the IMF’s Global Financial Stability Report warns that rising leverage and contingent liquidity risks in private credit could amplify stress.
• Spain, 6 October 2026: SpainCap, the Spanish private capital association, publicised the record 71 private debt deals closed in 2025.
• Europe, 14 April 2026 (context): according to PitchBook, cited by the German daily Börsen-Zeitung, European private credit fundraising was about EUR 63 billion in 2025, roughly half the US figure, and direct lending accounted for 75% of that market.

What it means for a private investor in Spain: growth is steady, but surplus capital calls for discipline. More money on offer does not make a deal better. Look at the structure, the security and the exit plan before the headline.

Illustrative example: what happens if company earnings fall

Imagine a direct loan to a company. This is an illustrative, hypothetical example that reflects no Ondara transaction: debt of EUR 24 million, EBITDA of EUR 6 million and a cost of debt of 9% a year (EUR 2.16 million of interest annually). Here is how interest cover changes if EBITDA falls.

After a 30% fall, the company barely covers its interest twice. A creditor without real security depends on the business recovering. That is why loan covenants matter and, where it exists, so does the value of the collateral.

How Ondara Group works

Ondara Group is an alternative investment manager based in Barcelona, active since 2018. We structure private debt transactions secured on real estate, analyse each one individually and work with real assets as collateral. Investors deal directly with the management team and the minimum investment is EUR 25,000. You can meet the team on the who we are page. We aim for target double-digit returns, always as a target and never guaranteed.

Risks to consider

Every investment carries risk, including partial or total loss of capital. In private debt, also consider:

• Default risk: the borrower may fail to repay on time.
• Illiquidity and term: capital is tied up until the deal matures.
• Surplus capital: competition among lenders can compress margins and loosen terms.
• Valuation and security risk: property security mitigates risk but does not remove it if the asset loses value.
• Data risk: market counts are third-party estimates and may be revised.

Frequently asked questions

How many direct lending deals were there in Europe in 2026?

798 in the first nine months, 3% more than a year earlier, according to Octus (15 October 2026).

Which deal types dominate?

Bolt-on acquisitions (31.1%), leveraged buyouts (29.6%) and refinancings (20.7%).

How does this differ from real estate direct lending?

Corporate lending relies on the company’s cash flow. Real estate lending adds a real asset as collateral, although that does not remove risk.

Is there too much capital for too few deals?

Octus notes that M&A volume still does not absorb all the capital available. It is a sign of competition among lenders.

Can a private individual invest in private debt?

Yes, but with the risk of capital loss and illiquidity. Analyse each opportunity with a professional before investing.

In summary

• European direct lending totals 798 deals in nine months of 2026, 3% more (Octus).
• Buyouts are growing, but available capital still exceeds deal supply.
• The IMF warns of leverage and liquidity risks in private credit.
• For an investor, structure, security and exit plan matter more than the headline.

If you would like to know how we invest, register as an investor and we will explain how it works. The minimum investment is EUR 25,000.

This article is for information purposes only and does not constitute an investment recommendation or financial advice. All investments carry risks, including the possible loss of the capital invested, and past or target returns do not guarantee future returns. Analyse each opportunity with a professional before investing.