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More than half (52%) said privately held mid-market companies were in the top two most underserved market segments while 50% put privately-held large corporates in the top two, the study by Nordic Trustee, part of global capital markets services provider Ocorian found.

Around 44% put companies in cyclical industries in the top two underserved segments ahead of 30% selecting publicly-held corporates and 22% choosing sponsor-backed corporates in the study with executives across the UK and Ireland, Germany, Switzerland, Benelux, the Nordics and Eastern Europe.

Just 2% combined put infrastructure and project finance in the top two underserved market segments, the research with professionals working across private credit and debt fund management private equity and corporates using private credit as a source of funding and for debt advisory firms shows.

However, the study found they ranked privately held mid-market companies and privately held large corporates at one and three when asked to say which segments were the most active in European direct lending. Infrastructure was ranked second with project finance ranked fourth.

Publicly listed companies, sponsor backed corporates and companies in cyclical industries were fifth, sixth and seventh, respectively.

The Nordic Trustee study found 82% questioned said average loan sizes have increased in the past 18 months across Europe with nearly half (49%) saying average loan sizes have increased by 10% or more over the period.

Just 11% reported that average loan sizes had fallen in Europe over the past 18 months with 7% estimating loan sizes were unchanged.

Cato Holmsen, Global Head of Capital Markets at Ocorian and CEO, Nordic Trustee, said: "Privately-held companies are among the most active market segments in European direct lending and yet executives believe they are the most underserved.

"Rising loan sizes over the past 18 months might seem to indicate that private credit providers are focusing more on bigger deals and not addressing strong demand from privately-held companies.

"However the mid-market privately-held sector is clearly seen as the most underserved despite also being seen as the most active highlighting a potential market opportunity." With over 30 years' expertise in the bond and loan markets and a track record of facilitating 14,000 transactions over the years, Nordic Trustee brings an unparalleled depth of knowledge to support bond and loan transactions in the UK and Europe.

It differentiates itself through its proprietary technology, extensive restructuring expertise which includes more than 450 restructurings and 2,000 noteholder meetings, and a problem-solving approach that streamlines complex transactions for issuers and investors alike. Nordic Trustee is committed to delivering best-in-class trustee and loan agency services tailored to the needs of issuers, investors, and intermediaries.