Glossary
Private debt
Private debt covers the financing that non-bank lenders, mainly debt funds, provide to companies outside the public markets.
Definition
Private debt refers to the financing that non-bank investors, mainly debt funds, provide to companies outside the public markets. The company, its shareholder where relevant and a small number of lenders negotiate each loan bilaterally. According to the France Invest and Deloitte study of March 2026, private debt funds invested €14,849m in 342 corporate debt transactions in France in 2025, with an average ticket of €43m. Refinancings accounted for 42% of these amounts, compared with 23% in 2024. The site’s Corporate private debt page brings together the data on this market and the instruments used.
Worked example
An unlisted mid-cap company with 600 employees obtains €60m from a debt fund to refinance its bank loan and finance an investment plan. The fund and the company negotiate the rate, the term and the covenants bilaterally, and the fund holds the loan until it is repaid.
Points to check
- The all-in cost (margin, fees, OID) compared with that of a bank loan
- The term and the repayment profile
- The number of lenders to consult for a waiver or an amendment
- The security required over shares and assets
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