Activity picked up in the US middle market direct lending space in 2Q23 but remained at lower levels. At US$16.3bn, sponsored middle market direct lending volume was up 32% from 1Q23 but was down 46% year-over-year. In contrast, the syndicated sponsored market slowed down relative to 1Q23, with issuance dropping 26% quarter-over-quarter and a whopping 64% from 2Q22. In turn, the ratio of direct lending to syndicated loan volume climbed to 2.6 times after dropping to 1.5 times in 1Q23. Finding quality deals, low M&A activity and more selectivity continue to be the main factors hindering activity in the sponsored market.
(Past performance is no guarantee of future results.)
Contact Diana Diquez
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.