LSEG LPC’s annual Middle Market & Large Corporate Loans Conference: Key takeaways

At the 2025 Middle Market & Large Corporate Loans Conference, hosted by LSEG LPC, financial services professionals convened to review market drivers from the past year and identify opportunities for 2026.

The November 2025 event featured a discussion titled, "2025 Market Shifts: Changes in Private Credit vs. BSL," moderated by DLA Piper Partner Alan Rockwell (New York).

Below, we highlight topics discussed at the event and summarize key statements and industry outlooks from speakers and panelists.

Deal flow

• The loan market generally began 2025 on a strong note. It paused due to “Liberation Day” tariffs and lower-than-expected interest rate cuts, before regaining momentum.


• Deal volume is expected to rise in 2026, though at a slower pace than lenders may prefer.


• Activity in 2025 was driven primarily by refinancings, repricings, and dividend recapitalizations, rather than by new deals. The pipeline for mergers and acquisitions (M&A) activity and new-money transactions is growing.


• Geopolitical factors and macroeconomic conditions may continue to be a focus in the loan market.


• Ongoing shifts between the broadly syndicated loan (BSL) and private credit markets are anticipated in 2026.

Pricing trends

• Pricing tightened throughout 2025.


• Market participants moved toward creative back-leverage structures to manage pricing pressure.

Choosing between BSL and private credit markets

• Speakers observed that, while some deals are a fit for either BSL or private credit markets, most transactions have a clear alignment with one or the other.


• Private credit was highlighted for offering greater flexibility – such as for large, delayed draw term loans – at the cost of premium pricing.


• Panelists noted BSLs’ tendency to pull back during periods of market uncertainty, whereas private credit lenders, operating on a loan-to-hold model, may be less exposed to market disruptions.


• Execution risk is higher in BSLs due to the use of flex terms in commitment papers.


• Cross-border deals appear to remain largely in the BSL space, as private credit in Europe is still developing. Banks also provide multicurrency revolvers and ancillary services that private credit cannot yet match.


• Although private credit lenders promote partnerships with banks, successful examples remain limited.

Relationships matter in private credit

• The private credit market is relationship-driven, comprising a small, interconnected group of participants.


• There is minimal “lender-on-lender violence” or sponsor-on-lender conflict in this space.

Looking ahead: Trends for 2026

As we move into the new year, the following trends are emerging:

• Moderate growth in deal volume: While deal flow appears to be increasing, it may not result in a surge.


• Continued pricing pressure: Creative structuring, including back-leverage, appears to remain a priority as competition intensifies.


• Private credit expansion: Private credit may gain traction, particularly in bespoke financing solutions, though cross-border dominance will likely remain with BSLs for now.


• Technology and data integration: Digital platforms and artificial intelligence-driven analytics are anticipated to play a larger role in underwriting and portfolio management.


• Regulatory and geopolitical watchpoints: Global events and evolving regulations are expected to remain a focus when shaping risk appetite and execution strategies.

In 2026, dynamics between BSLs and private credit will likely play a role in the competitive landscape, with flexibility, speed, and relationship strength emerging as key differentiators.

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