CaixaBank, BBVA and Santander led the ranking of private equity financing in Spain in 2025, with a total of 120 transactions signed, according to the “European Debt Mid-Market Monitor 4Q 2025” report prepared by the middle-market investment bank DC Advisory.
Specifically, CaixaBank granted 45 loans, followed by BBVA (43), Santander (41) and Sabadell (23). In the private debt fund segment, Oquendo completed ten transactions, ahead of Muzinich and Tresmares (9 each) and Ares (7).
Overall, the volume of private equity financing reached its highest level since 2019 — the year DC Advisory began compiling the report — while the fourth quarter also set a record with 36 transactions, the highest quarterly figure since the series began. The Spanish mid-market debt segment “continued to demonstrate strong resilience in Q4 2025,” significantly outperforming the third quarter in terms of volume and accounting for those 36 transactions, which represented around 32% of the 120 deals recorded during the year.
The increase in activity was primarily driven by declining interest rates, which contributed to a more accommodative lending environment toward the end of the year and supported a surge in refinancing and recapitalization processes. These types of transactions remained the dominant deal type, representing more than half of total activity during the quarter.
In terms of financing structures, unitranche loans — which combine senior and junior debt — accounted for 36% of transactions, the same share as club deals (financing provided jointly by banks). They were followed by underwritten transactions with 25%, while the remaining 3% consisted of other structures.
In line with previous quarters, the limited opportunities for exits or sales at attractive valuations have led many private equity firms to seek alternative sources of liquidity in both the primary and secondary markets. These include dividend recapitalizations and secondary transactions or continuation funds in portfolio companies.
The market continues to be shaped by a mix of amend-and-extend transactions, repricings and selective recapitalizations, a dynamic that is expected to continue in the short term. At the same time, an expanding pipeline of potential mergers and acquisitions deals is emerging, with several buy-side mandates quietly progressing through early stages, suggesting a possible meaningful pickup in transaction volumes in early 2026.
The report also highlights that increasing competition for high-quality assets has pushed margins down to some of the lowest levels seen in recent quarters. In this context, the market has accelerated its shift toward direct lending, which accounted for 49% of lending in 2025. Banks represented 32%, while the remaining share corresponded to hybrid or collaborative structures between funds and financial institutions.
At the same time, lenders continue to maintain disciplined underwriting standards, focusing on credit resilience and earnings visibility, as well as showing growing interest in asset-backed transactions.
“This year’s record figures show that the market remains highly active, seeking opportunities across different types of transactions, broadening its scope and maintaining a clear focus on asset quality,” said Pedro Afán de Ribera, managing director at DC Advisory Spain.
Looking ahead, although some uncertainty linked to global trade policy persists, the report points to a positive outlook. Market activity could gain momentum in the coming quarters, supported by successful fundraisings, continued demand for private credit and a potential shift in transaction trends toward acquisition financing, driven by lower interest rates and high levels of sponsor dry powder
Download the full reportat this link
- By DC Advisory
- 12/03/2026
- European Debt Mid-Market Monitor 4Q 2025