Investing Ideas

Middle market direct lending market update

Positive tailwinds persist in the asset class

Key Takeaways
  • The rapid and steep increase in rates and the prolonged inflationary environment have started to impact loans originated in 2021 and early 2022.
  • We believe the current environment for new opportunities has yielded some attractive investments and has, in many cases, shifted the market in the direct lender’s favor.
  • The market volatility the past year, including the regional bank crisis, arguably have strengthened the tailwinds in the asset class.