Daily Analytic: Direct lending comprised 59% of US LBO volume in 2023

Execution risk drove more LBO issuers towards the direct lending market last year. US direct lending LBO volume totaled US$57.8bn in 2023, 38% lower year-over-year. Last year’s total comprised 59% of overall US LBO loan volume, easily an all-time high, topping 2022’s 45% share. Syndicated LBO volume totaled US$39.4bn last year, 65% lower than 2022’s level and the lowest since 2009. The syndicated versus direct lending theme will be a big one in the loan market this year. There have already been a few direct lending deals repriced in the BSL market in January as banks look to claw back some of that market share.

(Past performance is no guarantee of future results.)