Shaking Off the Summer Doldrums: Compared to last year, middle-market debt issuance retreated in May-July, with volume and deal count both down ~30% – a stark contrast to AI-driven activity in public markets. Transaction mix shifted, too: dividend recaps were virtually non-existent, while M&A financings gained market share, reflecting a more cautious approach from credit committees, who generally looked for deals with fresh equity coming in. Yet preparatory activity remains strong, with market participants anticipating a burst of issuance as schools get back in session.
- A Lighter Roll Call: Middle-market sponsor-backed portfolio companies issued $42B of debt across 192 deals over the last three months, down from $59B and 274 deals in the same period last year.
- Summer School for LBOs: Buyout financings held steady at $18B and were >40% of overall activity. Collectively, LBO + add-on M&A accounted for ~75% of financing deals over the last 3 months (vs. ~58% last year).
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