Private credit activity “remained strong” in 2025 boosted by high buyout activity and collateralised loan obligation (CLO) issuance, according to data from PitchBook.

PitchBook’s LCD platform said last year saw a recovery in buyout activity, which helped lift volumes to their highest level since LCD started tracking. Buyout financing reached $81.4bn in 2025, up from $72.9bn in 2024.

The research firm noted that leverage buyout (LBO) volume was spread across fewer deals in 2025, signalling a comeback for larger transactions. However, the number of direct lending deals financing buyouts declined to 214, down from 248 in 2024.

Private credit growth was further supported by CLO formation, PitchBook said. CLO issuance reached a record $43.1bn in 2025, up from $38.5bn in 2024.

Despite the recovery in buyouts, overall direct lending transaction volumes fell 11 per cent year-on-year to $247bn, PitchBook said.

Alongside strong buyout activity, lower spreads in the syndicated loan market, coupled with robust demand for deals, continued to attract private credit borrowers.

In 2025, $34.1bn of direct-lender loans were refinanced in the broadly syndicated loan market, the highest level since LCD began tracking the data in 2022. This volume of takeouts was 18 per cent higher than in 2024, PitchBook added.

Direct lenders also refinanced $36.9bn of syndicated loans, representing the highest level since tracking began.