AlixPartners Mid-Market Debt Report 2024 Review and 2025 Outlook

The AlixPartners Mid-Market Debt Report serves as a comprehensive analysis of the mid-market debt landscape for 2024 and the outlook for the first half of 2025. The report details a significant surge in leveraged deals, which increased by nearly 50%, driven by improved credit conditions and a rise in leveraged buyout (LBO) activity. It notes that while lenders were eager to deploy capital following a slow 2023, the valuation gap between buyers and sellers continues to constrain M&A activity. The report also outlines the impact of the UK Autumn Budget on business confidence and deal activity, particularly in sectors employing entry-level workers. Furthermore, it discusses the evolution of the private debt market, highlighting the growth of private credit and its collaborations with banks. The document anticipates that geopolitical uncertainties and economic trends will shape the mid-market debt landscape in 2025, with expectations of increased M&A activity as valuation spreads narrow. Overall, the report provides a detailed examination of market dynamics and trends affecting mid-market debt transactions.