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.)
Contact David Puchowski
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.