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Master’s students from the School of Business Anton Kattelus and Roope Tainio carried out an extensive review of the private credit market and its opportunities and characteristics. The project's objective was to understand the market's structural development and identify financing situations where private credit serves as an alternative to traditional bank financing. The project's results were presented to experts from OP Pohjola's strategy unit in December 2025.

Private credit, also known as non-bank lending, has grown since the financial crisis, particularly in financing medium-sized businesses as regulation in the banking sector tightened. In recent years, expansion into larger transactions has increased competition in financing arrangements, making the topic timely for banks and other debt financing arrangers.

The project examined the private credit market as a whole by combining market data, research literature and expert interviews. The work was done in collaboration with OP Lab and the strategy team, which helped refine the analysis during the project. The review included perspectives on corporate financing and asset management to evaluate private credit as part of the development of debt and capital markets.

Private credit has grown in the Nordics

The project results showed that the amount of assets under management (AUM) in the private credit market, which is used to describe the market size, has grown significantly, especially in the United States and Europe since the financial crisis. The results also revealed that key markets for banks, such as syndicated loans and bond markets, have lost shares to private credit. 

The students also identified that in the Nordic countries, private credit financing has increased in acquisitions and financing arrangements, particularly in the healthcare, software, real estate and industrial sectors. Several factors were recognised behind the development, such as tighter banking regulations, which have directed some riskier corporate financing to private markets, and institutional investors’ increased allocations to private credit investments.

In addition to market observations, the students explored what should be considered in corporate financing and fund services offers concerning the development of the private credit market. In Europe's and the Nordic countries' bank-centric debt market, the students recognised banks' strengths as deep customer relationships and comprehensive service offerings. Alternative business models identified from the market and research were presented, differing in risk-taking, control and financing structures. 

Clear recommendations to support strategy work

The students were pleased with the project. ‘During the project, we were given a lot of responsibility and finally got to present the results to OP Pohjola's strategy unit. It was great to see that the outcome was useful and appreciated,’ Anton Kattelus said.

Roope Tainio shared this view and said that effective collaboration also supported the progress of the work. ‘The project suitably challenged us to apply what we learned in our courses. Active collaboration with OP Pohjola's internal innovation accelerator, OP Lab, was also useful and helped us delve deeper into important topics for the client.’

According to Strategy Lead Jyrki Ikonen, who acted as the project owner from OP Pohjola's side, the group did excellent work and exceeded the project's goals. ‘The project's reporting showed that the development of private credit is also visible at the Nordic level, and the presentation made by the students was professionally crafted. The market observations and conclusions made in the project based on market data and research are useful. It was also great that the students bravely made recommendations.’

Professor Juha Joenväärä from the Department of Finance, who acted as the project's academic supervisor, also praised his students. ‘Anton and Roope demonstrated a strong understanding of banks' opportunities to develop their business and how to respond to an increasingly competitive environment. The recommendations presented were clear, analytical and highly implementable. They produced new, relevant information and well-justified perspectives.’