Private Credit’s Record Quarter Masks Worry of Smaller Deals (1)

The good news for private credit lenders: they’re getting to work on a record number of deals. The bad news: rising dealflow hasn’t brought them the billion-dollar deals they covet most.

The industry inked 252 deals in Europe in the three months through July 1, its biggest quarter ever, according to the Deloitte Private Debt Deal Tracker. That growth was fueled by relatively small fundraises for companies that earn less than €75 million ($82 million), according to separate datafrom Wells Fargo & Co., which shows stagnant volumes for deals from higher earners.

Downsized deals are just another symptom of ...