The third quarter of 2024 highlighted many of the same pressures that characterized the second quarter for the private credit market: spread compression and fierce competition in large-cap credits.

As the LBO market returns, private credit remained a compelling alternative debt source — but banks are putting up fierce competition. Direct lenders have reacted both by reducing pricing themselves and by making concessions on other terms to maintain their footing.

This report explores the factors shaping the market landscape in Q3, from spread compression and loosening covenants to shifts in fundraising patterns, market bifurcation, and evolving refinancing trends.

Data for this analysis was gathered from public sources, insights from 9fin’s editorial team, and direct submissions from lenders.