A tougher economic environment and tighter capital market conditions created new challenges for middle-market borrowers in 2023. The debt financing market experienced less loan activity, more conservative underwriting standards and higher financing costs relative to prior years. Continued changes demand additional planning from borrowers to front-run requirements and adapt to the evolving landscape.

Table of Contents

I. Business & Capital Market Conditions

II. Key Market Trends

i. Loan volume

ii. Underwriting standards

iii. Interest costs & debt capacity

iv. Dry powder

III. Implications for 2024 Financings