Private Credit

Stuart Mathieson on Direct Lending in 2026

January 2026 – 4 min read

Direct lending is evolving fast, bringing both opportunity and complexity. Stuart Mathieson highlights why discipline, strong underwriting and regional insight are key to navigating competition and managing risk in a maturing global market.

The global direct lending market has expanded at an extraordinary pace, attracting unprecedented capital and a broader borrower base across North America, Europe, and Asia Pacific. This surge has unlocked opportunities but also introduced new layers of complexity. Heightened competition has led some lenders to stretch leverage, accept tighter pricing, or ease documentation standards.

Sustainable performance isn’t about chasing momentum, it’s about discipline. Resilient managers stay rooted to core strengths and underwriting standards. Not all direct lending is equal – the traditional middle market continues to offer attractive risk-adjusted returns, especially first-lien senior debt supported by strong documentation.

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Headshot of Stuart Mathieson smiling at the camera.

Stuart Mathieson

Head of European Private Credit & Capital Solutions

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