13 May 2026

International Debt Finance Intelligence Report 2026

A year of contrasts: Competition meets caution

Download our 2026 report

In 2025, geopolitical shifts created both challenges and opportunities related to mergers and acquisitions (M&A). The introduction of tariffs, among other international developments, contributed to a focus on extensions, refinancings, recaps, and bolt-ons, rather than a wave of new platform M&A activity. The economic indicators at the start of 2025, such as stabilising interest rates, were offset by broader global developments.

Macro conditions, combined with the continuing gap between seller and buyer value expectations, meant new deals were in relatively short supply. Market participants competed for high-quality assets in sectors seen as resilient, such as healthcare and technology. However, at the start of 2026, the technology sector navigated new challenges related to advances in artificial intelligence. That flight to quality, coupled with unbalanced supply and demand, largely resulted in competitive pricing from lenders, as seen in our market data. As 2025 drew to a close, there were signs of a pick-up in activity. Deals were prepared for sale, and the market showed cautious optimism, which continued into January 2026.

However, events in the Middle East have contributed to uncertainty within the global market, which could have a cooling effect on the confidence of investors and lenders to enter into new M&A deals. A resolution to the situation could, over time, help restore market confidence. In that scenario, a repeat of 2025 deal flow activity may be a key highlight of 2026.

Our International Debt Finance Intelligence Report 2026 covers:

Market evolution – a look back at 2025
Deal economics – including pricing and arrangement fees, margin ratchets and PIK toggles
Financial covenants and cures
Annual recurring revenue financings
EBITDA adjustments and exceptional items
Key market terms - including call protection, incremental facility, mandatory prepayments and basket caps
Super senior dynamics: Who controls the clock on enforcement?
Super senior lending in the Nordics: A comparative deep dive
Outlook

Key takeaways

	Refinancings dominated. M&A remained patchy throughout 2025, with refinancings, dividend recapitalisations and balance sheet management accounting for 60% of deal activity for transactions with a debt size over EUR100 million.
	Pricing tightened. Competition for high-quality assets drove median opening margins down to 5.5% across private credit deals in the UK and Europe, while bank-only deal margins returned to 2022 levels at 4.25%.
	Borrower-friendly flexibilities expanded. PIK toggle prevalence increased, EBITDA cures appeared in nearly half of all 2025 private credit deals and we’ve seen greater flexibility in the total cap on EBITDA adjustments.
	Continuation vehicles gained momentum. With traditional exit routes remaining selective, industry estimates suggest continuation vehicles accounted for around 20% of all private equity exits in 2025, up from 12–13% in 2024.
	Optimism gives way to guarded realism. Heightened geopolitical uncertainty and macroeconomic volatility are clouding the outlook for deal activity. Large pools of undeployed capital remain, but the pressure to deploy has eased as lenders take a measured approach to risk.