Diverging Dynamics in Upper and Middle‑Market Private Credit
In the upper middle market, where deal sizes compete with the BSL market, private credit now closely resembles public credit in terms of pricing and documentation. In the traditional middle market, however, historically low M&A activity combined with large inflows into evergreen private credit funds has intensified competition, compressing risk premiums and reducing deal differentiation — attractive for investors today, but a potential source of risk looking ahead.
