US private credit lending continued on its upward trajectory in 4Q25, driven by a jump in new money financings

US direct lending sponsored volume climbed to US$109bn in 4Q25, an increase of 19% from the prior quarter. This uptick was driven by add-on M&A (+78%) and LBOs (+23%), which helped push new money financings up 44% to US$78bn. In contrast, refinancing volume fell to US$31bn in 4Q25 from US$37bn in the prior quarter.

For full year 2025, direct lending volume totaled US$380bn, with the new money portion up 4% to a record US$248bn. Digging deeper into new money direct lending in 2025, add-on M&A slipped 14%, while LBO lending and dividend recaps were among the categories leading the charge upwards, with both segments increasing by 21%.