How would you characterize the quality of 2Q23 deal supply?

One of the main challenges that middle market lenders have faced this year is finding high quality deals. According to Refinitiv LPC’s 3Q23 Middle Market Outlook Survey’s preliminary results, 20% of lenders characterize the 2Q23 supply of deals as having poor quality, while 44% said that it was below average. This paints a more unfavorable picture than the prior quarter when a lower 13% said the supply was of poor quality and 37% described it as below average. With limited opportunities to put money to work into high quality deals, lenders said that when one hits the market, there is a lot of competitive pressures.

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