
Middle market lenders were asked in a recent LPC survey if they expect to meet their lending goals this year. Just over two-thirds of respondents said they expect to meet this goal. This reflects a more optimistic outlook than at the same time last year when the responses were evenly split. For those lenders that expect to meet their goal, the main themes cited included their existing portfolio generating incremental opportunities, an expectation that deal flow will pick up in 2H24, non-sponsored opportunities, larger hold sizes and reasonable goals. Those that do not expect to meet their lending goals in 2024 cited lack of deal flow year-to-date, lack of quality deal flow, a very competitive market and greater selectivity.
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Concentrated Effort
Tech deals favored upper end of market, especially in 2021 when software valuations peaked. Source: KBRA DLD Research