Last year saw a flood of liquidity re-enter European credit markets as investors sought yield, which has been very good news for private equity firms. But while cheaper credit has been available, deal-making opportunities remain thin on the ground. Instead, firms have been taking advantage of the hot credit markets to refinance their portfolio companies, in many cases to fund dividends.

In the period from January 1 to December 9, 2013, there were $123.9 billion worth of loans issued for 214 private equity-backed deals in Europe, of which $47.5 billion was for refinancing 58 deals. It is the latest strong year for refinancings, which have been busier than they were in the boom era before the financial crisis.