Quarterly Reports

Migration to Private Credit Continues: Q3 Credit Markets

Written by Dinan | Sep 29, 2025 10:56:35 PM

Q3 2025 Highlights


  • Market volatility, driven by changes in tariff policy, labor market softness, and dovish monetary policy expectations, defined the quarter.
  • Record dry powder availability chasing a limited deal pipeline has allowed borrowers unprecedented negotiating power, as reflected in a combination of narrowing spreads, higher leverage, and more flexible covenant structures.
  • A cautious M&A market tempered demand for acquisition-related financing; conversely, private credit increasingly funded organic growth initiatives.
  • Notably, private credit is also increasingly stepping in to refinance “fatigued” incumbent lenders.

Learn More

Contact Michael Brill, Managing Director and Head of Private Capital Markets at Dinan Capital Advisors, for more report insights.