NETHERLANDS Trends and Developments Contributed by: Gianluca Kreuze, Ruben den Hollander, Anne van Geen and Sanne van Esterik, Loyens & Loeff
debt can plug the gap here and provide good alternatives, such as subordinated debt (ranking behind the existing senior debt). More broadly, private credit’s market share is expected to continue to grow, (although the sec- tor focus on private equity is likely permanent), and direct lenders will remain key sources of liquidity, offering flexible financing options, so long as the regulatory environment allows them to do so. They will continue to compete with syndicated loans, chasing the same transac- tions. There will be an increase in more junior opportunities when companies are struggling to refinance their existing debt. Direct lenders will likely be more flexible towards dividend recapi- talisation transactions in order to return capital to limited partners when exits are postponed. Commercial banks might regain some market share, given the direct lenders’ high costs and a willingness to copy some direct-lender features.
Finally, sustainability and green finance are expected to remain significant themes in 2025, with growing investor demand and increased regulatory initiatives advancing the agenda for responsible investment.
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