EFAMA research shows that loan originating funds have driven growth in EU private debt market

AIFMD
27 January 2026 | Press Release
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The European Fund and Asset Management Association (EFAMA) has released today a new issue of its Market Insights series titled “Market-based Finance in Europe: The rise of private debt and loan originating funds”. This report sheds further light on the growth of the private debt and loan-origination market in Europe, highlighting key developments, structural trends, and its growing importance within the capital markets landscape. From April 2026, new harmonized EU rules on loan origination in funds will apply as part of the AIFMD review. ESMA has also proposed regulatory technical standards that recognise the diversity within loan-originating funds and the need for a variety of tailored approaches.

Key findings:

  • New EU private debt investments have expanded sharply since 2013, reaching nearly €75 billion in 2024, supported by investor demand for long-term yield and the growing complementarity between private debt and private equity. 

  • Europe remains the second-largest global private debt hub. US-domiciled funds captured over 60% of global private debt commitments during 2020–2024, while Europe’s share fluctuated between 21% and 24%. 

  • Loan-originating funds (LOFs) are a key driver of private debt growth, accounting for around two-thirds of private debt commitments in 2020–2024, with direct lending strategies being in the majority.

  • LOFs remain concentrated in a few financial centres, with Luxembourg accounting for 57% of commitments in 2024.

Vera Jotanovic, Senior Economist at EFAMA commented: “Our analysis shows that private debt fundraising has expanded significantly over the past decade and is increasingly shaping Europe’s market-based finance landscape. Loan-originating fund strategies now account for around two-thirds of private debt commitments, highlighting their growing role in channeling long-term capital to businesses, infrastructure and real estate across Europe.”

Zuzanna Bogusz, Senior Regulatory Policy Advisor at EFAMA commented: “The revised AIFMD framework is an important step toward a more harmonised EU approach to loan origination. If implemented in a proportionate way, it can support the responsible growth and cross-border scaling of loan-originating funds, while strengthening risk management and investor protection across the market.”

- ENDS -

 

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Our analysis shows that private debt fundraising has expanded significantly over the past decade and is increasingly shaping Europe’s market-based finance landscape. Loan-originating fund strategies now account for around two-thirds of private debt commitments, highlighting their growing role in channeling long-term capital to businesses, infrastructure and real estate across Europe.
(Vera Jotanovic, Senior Economist at EFAMA)

The revised AIFMD framework is an important step toward a more harmonised EU approach to loan origination. If implemented in a proportionate way, it can support the responsible growth and cross-border scaling of loan-originating funds, while strengthening risk management and investor protection across the market.
(Zuzanna Bogusz, Senior Regulatory Policy Advisor at EFAMA)

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