Direct Lending Poised to Pick Up as Private Equity Deals Mount

  • September deals driven by health care, business services
  • Lenders are a touch more cautious, pushing back on some terms

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U.S. direct lending activity is expected to pick up amid a swelling private equity M&A pipeline and as borrowers seek to wrap up financing before the end of the year.

Lending is lagging last year’s breakneck pace, but there are “encouraging signs” that a long-anticipated increase in deal flow will materialize, according to Michael Ewald, global head of Bain Capital Credit’s private credit group. That view is based on the level of sell-side advisory activity currently in the market, he said.