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Investment Guide

LP Guide to European Private Credit

Practical guide for institutional investors allocating to European private credit — manager selection, due diligence frameworks, and portfolio construction considerations.

36 pages
30 min read
PCE Research Team
PRT

PCE Research Team

Research

Table of Contents

Introductionp. 2
European Private Credit Landscapep. 4
Strategy Selectionp. 10
Manager Due Diligencep. 16
Portfolio Constructionp. 24
Fee Structures & Termsp. 28
Risk Considerationsp. 32
Conclusionp. 35

Executive Summary

This guide provides institutional investors with a practical framework for evaluating and allocating to European private credit strategies. With over 200 active managers and multiple strategy types, the European private credit market offers both opportunity and complexity for allocators.

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Introduction

European private credit has evolved from a niche alternative to a core allocation for institutional portfolios globally. This guide provides a framework for navigating the market.

European Private Credit Landscape

The European market differs from North America in several important dimensions: • More fragmented banking system creates persistent origination opportunities • Greater prevalence of sponsor-backed transactions • Cross-border complexity in restructuring scenarios • Currency considerations for non-EUR allocators...