Last quarter, there was US$12.5bn of US sponsored middle market direct lending volume. This was 49% lower quarter-over-quarter, 45% lower year-over-year, and the lowest level since 2Q20. The 204 deals across both the syndicated and direct sponsored middle markets in 1Q23, was the fewest since 3Q20’s 183 count. Lenders consistently said there was a lack of quality deals in the 1Q23 supply. One direct lender told Refinitiv LPC in March, “It’s not that there are not deals out there, it’s just the quality is very low. (Lenders) are being pretty smart about what they’re doing.”
(Past performance is no guarantee of future results.)
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Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.