The middle-market leveraged finance sector is competitive again, according to the latest edition of Houlihan Lokey’s MidCapMonitor. Speaking to Börsen-Zeitung, Managing Director Thorsten Weber commented: “Towards the end of the year, debt funds, in particular, wanted to successfully complete transactions and were therefore extremely competitive,” with margins of less than 6% in some of the unitranche financings, some 75 to 100 basis points less than in the first half of the year. In total, 2023 saw 124 completed transactions, down 22% from the record years of 2021 and 2022, but still the third-best year since the MidCapMonitor was launched.
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