Syndicated loans are back | Euromoney

Direct lenders In the U.S., acquisition financing activity doubled in the six months to June compared with the same period last year, according to a report published in early August by Debtwire and Mergermarket, as private equity firms show a willingness to enter into more complex transactions, from larger ticket sizes to multibillion-dollar public company acquisitions.

“Direct lending has become a critical resource “Acquisition financing is on the cards in the first half of 2024 as corporate borrowers seek secured financing in an uncertain market,” says Debtwire’s John Bringardner. “However, broadly syndicated loans are making a comeback and the pendulum is expected to swing away from direct lenders, which have entered a period of contraction and consolidation.”

The first relates to the tighter pricing that direct lenders have to offer, while consolidation has occurred as follows: banks are looking Purchasing direct lenders and pursuing mergers among major players in the private lending sector, such as Blue Owl’s acquisition of Atalaya Capital.

The increased interest in syndicated loans can be explained in part by the fact that there is a lot of cash being raised in private loans, says Laila Kollmorgen, a collateralized loan obligation tranche portfolio manager at Pinebridge Investments.

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