Middle market LBO direct lending surges to new heights

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It was a record setting quarter for middle market LBO direct lending in 3Q21, with volume surging to US$16.3bn, nearly double the 2Q21 level and 50% above the prior record set in 4Q20.
 
On a year-to-date basis, the US$33.9bn of middle market direct lending LBO volume posted in 1-3Q21 is just shy of the full-year record of US$35.7bn recorded in 2018. From a competitive vantage point, direct lenders continued to win market share over the syndicated market. Direct lenders saw 3.8x more middle market LBO volume than the syndicated market in 3Q21.