Halftime Adjustment: Private credit kicked off the year in full stride, but Q2 brought a clear pause in play as direct lending issuance volume and deal count both fell from Q1 2026 levels. Just as Spain and Argentina are finalizing tweaks ahead of the big game, direct lenders in the middle market are making their own halftime adjustments: staying selective rather than sidelined and keeping possession in sectors with strong fundamentals and clear performance visibility.
- Slowing the Pace: Middle market direct lending volume and deal count both fell in Q2, while spreads widened and relatively fewer deals priced below SOFR + 500.
- New Favorites Emerge: Healthcare, Utilities, and Building Materials gained the most issuance share in H1 2026,
while Technology continued to lag.
Connect with Our Team
- Jonathan Zucker, Managing Director, Head of Capital Advisory, jzucker@Intrepidib.com
- Boris Zikratov, Director, Capital Advisory, bzikratov@Intrepidib.com
- Kevin Striepe, Vice President, Capital Advisory, kstriepe@intrepidib.com
- Anish Balabhadra, Analyst, Capital Advisory, abalabhadra@intrepidib.com
- Sam Nielsen, Analyst, Capital Advisory, snielsen@Intrepidib.com