Banks Regain Market Share in Buyouts: 50% Market Share Expected by 2025

Wall Street banks are poised to regain market share in leveraged buyout financing, recovering from 39% in 2023 to over 50% by 2025, according to PitchBook data. The shift comes as private credit lenders face increased challenges due to higher interest rates and tighter borrowing conditions. Following the Federal Reserve's rate hikes and the 2023 banking crisis, banks are looking to capitalize on easing regulations. Moody's chief economist Mark Zandi anticipates further credit problems in the private credit sector in the coming months due to investor demand for liquidity and rising default risks.