AlixPartners Mid-Market Debt Report 2024 Review and 2025 Outlook

The AlixPartners Mid-Market Debt Report serves as a comprehensive analysis of leveraged debt activity and market trends for 2024 and the first half of 2025. It outlines a significant surge in leveraged deals, which increased by nearly 50% due to improved credit conditions and heightened LBO activity. The report notes that private equity firms faced challenges with valuation misalignments, impacting exit opportunities. It details the evolving landscape of the mid-market debt sector, highlighting the growth of private credit and its increasing collaboration with banks. The report also discusses the implications of political uncertainty and economic factors such as inflation and interest rates on M&A activity. It presents insights into refinancing trends and the maturation of LBO facilities, indicating a shift in strategies among private equity firms. The report anticipates that 2025 will see borrower-friendly terms and an increase in innovative debt structures, shaped by both economic conditions and ESG pressures.