Sponsor-driven demand led private credit volumes through early 2025
In 1Q25, direct loans reached a total deal volume of USD 66bn, lower than the USD 363bn recorded in the institutional leveraged loan market but closely matching high-yield bond volumes of USD 65.8bn. Despite lagging leveraged loan volumes overall, direct lending activity was heavily driven by leveraged buyout (LBO) and other M&A transactions, which accounted for 57% (USD 37.39bn) of total issuance in 1Q25, significantly exceeding refinancing deals, which made up just 31% (USD 20.7bn) of the volume.
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