Leveraged Loan Insight & Analysis – 1/24/2022

Direct lending drives sponsored middle market issuance to new record


Direct lending drove sponsored middle market loan issuance to new heights in 4Q21 and full-year 2021, as sponsors tapped the market at a blistering pace to fund LBOs and add-on acquisitions. Direct lending activity spiked to US$131bn in 2021, almost doubling 2020’s volume and topping the previous 2018 high by 28%.