When Wall Street Pauses, Europe Collects.
Executive Summary
Fundraising in asset‑backed lending (ABL) shows a striking regional contrast: Europe typically captures only ~13% of global capital in asset-backed funds. But between January and July 2025, Europe’s share jumped to 37% — not because demand boomed there, but because U.S. fundraising cooled. This shift matters. For strategic investors, it’s a signal to reassess where capital flows, where value is mispriced, and where opportunity lies.
What’s Happening?
Historically, Europe has attracted around 13% of the ~$196 billion raised into asset-backed (asset-based lending) strategies.
From Jan–July 2025, Europe’s share rose to 37%, corresponding to ~$3.8 billion of $10.2 billion total ABL fundraising.
But this “Europe surge” is largely a byproduct of U.S. fundraising softening — not an explosive growth in European investor appetite.
This data comes from market commentary citing Preqin trends.
Why It Matters for Investors
1. Relative Opportunity vs. Hype
Europe is not suddenly dominating asset-backed lending — it’s gaining share because U.S. momentum is stalling. That means there may still be undervalued or undercapitalized ABL opportunities in Europe.
2. Capital Reallocation Signals
LPs are reallocating from U.S.-centric strategies toward global diversification. Europe being in focus suggests regional credit, infrastructure, and aviation-backed credit (like aircraft leasing or jet-backed lending) might attract more capital.
3. Pricing & Terms Leverage
With fewer U.S. buyers driving competition, deals in Europe may give tougher negotiators more leverage. Europe deals may offer better spreads, covenants, or security structures.
4. Structural Constraints & Risks
Europe has more regulatory, credit, and market fragmentation risk. Currency, legal, enforcement, and market liquidity differences are real — you can’t just port U.S. ABL models directly.
What’s Next?
Focus on best-in-class collateral (jets, infrastructure, aviation assets) in Europe.
Be ready to fill capital gaps left by U.S. pullback in ABL.
Build robust underwriting and structuring competence for European legal/regulatory environments.
Monitor fundraising flows to detect when Europe’s bump is temporary or structural.
Join Jasmine Blue Capital
We see this shift as more than data — it’s a call to action. If you:
Want exposure to asset-backed yield with structural security
Believe in aviation, infrastructure, and hybrid credit models
Want to deploy capital where structural demand meets discount
📩 Let’s analyze European ABL deals together. We’ll help you see where edge still exists — not hype, but real value.