Private Credit: Across the Atlantic—Comparing U.S. and EU/UK Direct Lending

KBRA’s assessment portfolio of European Union (EU)- and UK-based middle market (MM) companies has grown more than fivefold since 2022. The cohort reached 465 unique obligors across more than 50 managers and 60 KBRA-rated transactions during the last 12 months (LTM) ended June 30, 2026, providing sufficient scale for a regional comparison with U.S. borrowers. On a point-in-time basis, our primary takeaway is that the EU/UK cohort has stronger credit quality.

This KBRA report, while not intended to be a like-for-like test of underwriting between regions, examines the similarities and differences visible today and the primary drivers of credit quality variations, including loan vintage, operating performance, and other credit performance metrics. We also compare loan spreads across the two regions. As KBRA’s EU/UK portfolio continues to expand, we expect to update this analysis to further explore regional nuances.

Key Takeaways