Direct lending M&A declines QoQ and YoY except in upper middle market

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M&A activity declined 12% in the third quarter of 2026 to 296 deals, from 336 recorded in the second quarter. While the number of deals declined, the share of M&A activity increased to 64% in the third quarter, as the drop in opportunistic deals such as dividend recaps and refinancings/repricings was more pronounced.