Survey: Outlook for Middle-Market M&A Lending in 2Q24

According to preliminary results from LSEG LPC’s quarterly middle market lender outlook survey, a large majority, nearly 70%, of respondents think that there will be a moderate increase in M&A activity in 2Q24, compared to 1Q24. Another 26% expect M&A activity to be flat next quarter. Most middle market lenders felt they did not lend as much as they wanted to in 1Q24, citing the lack of new M&A as one of the main factors. Forty-seven percent of survey respondents say the main impetus to kickstarting M&A activity is that valuations need to come lower while another 29% answered interest rate cuts are needed for M&A to pick up further.