Two-thirds of all middle market LBOs are being financed by direct lenders, from zero in 2013.
Direct lending supply and demand is driven by increasing amounts of dry powder.
As enduring as the US expansion seems, eight other economies have done better over past three decades.
Asset valuations tops the worries confronting sponsors in meeting return hurdles.
Since the credit crisis private equity sponsors have quickened the pace and number of add-on acquisitions.
The number of buyouts with purchase price multiples over 10x has increased markedly since 2013.
Purchase price multiples eased last year, though still sustained at near record levels.
The cost of buying companies has risen for private equity sponsors as a multiple of ebitda since the credit crisis.
After peaking in 2017 at close to 50%, equity share of capital in the middle market has declined to less than 35%.
Mergers, consolidations, and regulation all share responsibility for the flight of leveraged loans to the non-bank sector.