Middle market LBO loan volume totalled US$10.28bn in the second quarter, down 30% compared to 1Q25 results but up 2% compared to the year ago period. At US$8.7bn direct lending LBO activity represented over 84% of total middle market buyout financing during the quarter. Despite steady liquidity across both the the direct lending and broadly syndicated loan markets, market uncertainty contributed to a slow down of new sponsored activity early in the quarter and while there were signs that lender demand for assets outpaced supply, the build out of any new pipeline remained limited.
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Q2'26 BDC analysis shows additional 184 bps of nonaccruals at cost
In a universe of 173 business development companies, or BDCs, Octus identified a total of $9.5 billion of debt (at cost) in nonaccrual status reported in the second quarter of 2026, a slight decline of 5% from $10 billion in the first quarter of 2026.
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The story changes depending on which numbers you’re counting.
Private Credit Defaults 101: Different Numbers, Different Stories
In Season 2 of Billions, Bobby Axelrod takes his lawyer Orrin Bach to an empty Yonkers racetrack in the dead of night.