Deals with nonbacked companies as targets as a share of all PE buyouts by quarter
Download PitchBook’s Report here.
Borrowing costs remain elevated and will likely stay that way for the remainder of 2024. As a result, PE firms continue to look further down market at companies with lower, more favorable purchase prices to compensate for the lack of leverage. When looking further down market, the number-one seller that sponsors have found is nonbacked companies, also known as founder-owned businesses, that have never accepted outside capital. Additionally, US PE firms continue to sit on elevated levels of dry powder, which currently totals $965.0 billion and needs to be put to work in a limited universe of sellers. As a result, we expect nonbacked businesses to continue to take up a growing percentage of all US PE deal activity.
(Past performance is no guarantee of future results.)
Latest news
Q2'26 BDC analysis shows additional 184 bps of nonaccruals at cost
In a universe of 173 business development companies, or BDCs, Octus identified a total of $9.5 billion of debt (at cost) in nonaccrual status reported in the second quarter of 2026, a slight decline of 5% from $10 billion in the first quarter of 2026.
Reading the Board
The story changes depending on which numbers you’re counting.

Private Credit Defaults 101: Different Numbers, Different Stories
In Season 2 of Billions, Bobby Axelrod takes his lawyer Orrin Bach to an empty Yonkers racetrack in the dead of night.