Syndicated loans bounce back

Direct lending may have benefitted from the resurgence in US private equity buy outs in the first half of the year, but there may still be a return to syndicated markets.

Direct lenders in the US doubled their buy-out financing activity in the six months to June compared with the same period last year, according to a report published by Debtwire and Mergermarket in early August. Private equity companies are showing their willingness to take on more complex transactions, from larger ticket sizes to multi-billion dollar listed-company acquisitions.

Direct lending became a critical source of buy-out financing in H1 2024 as corporate borrowers sought guaranteed financing in an uncertain market,” says Debtwire’s John Bringardner.

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