Americas Private Credit Review H1’26: Spreads Widen, Caution Tightens as Lenders Adjust to Deal Flow Slowdown

Reporting: U.S. PCDO Team In just six months, the private credit industry has experienced a substantial and remarkably fast reversal in momentum of deal flow and appetite for risk. Last year, signs of the asset class’ growth were marked by a slew of mega-deals, often fueled by strong valuations in the software sector, as lenders showcased their ability to take down $1 billion-plus tickets and ask for more. Landmark transactions last year included Thoma Bravo’s $10 billion carve-out of Jeppesen and Clearlake Capital’s $7.7 billion take-private of Dun & Bradstreet. By contrast, this year’s data shows a steep dropoff around large-cap software deals requiring a total debt quantum of more than $500 million. While such deals tallied nearly 20% of total direct lending market share in the fourth quarter of 2025, they comprised just 5% of deal flow in the second quarter of 2026, according to Octus’ private credit data. The pullback has led lenders to explore alternative strategies as the private credit industry continues its journey from niche financing solution to mainstream competitor to the broadly syndicated market. The market has seen a pivot toward wider spreads, tighter covenants, a burgeoning secondary market and a preference for down-market deals –[...]