Private equity sponsors are capitalising on renewed competition between Wall Street banks and private credit firms, with more than $20bn of buyout debt recently mandated, according to Bloomberg.

JPMorgan, Goldman Sachs, and Citigroup have won mandates from firms including KKR, Advent International, and Thoma Bravo, as syndicated loan markets regain momentum. The revival has been fuelled by a surge in collateralised loan obligation (CLO) issuance, providing deep liquidity and enabling banks to offer borrowing costs at their lowest levels in years.

Among recent high-profile transactions, Advent tapped banks for the financing of its Zentiva sale to GTCR, KKR secured bank debt for its acquisition of UK software maker Spectris, and Thoma Bravo raised $6bn to fund its Dayforce takeover.

While banks are regaining share, private credit remains central to the financing toolkit for buyout firms. Warburg Pincus recently opted for $3.6bn of private debt from Blackstone and Ares to finance the acquisition of Park Place Technologies, while other deals continue to demonstrate sponsors’ preference for the speed and certainty offered by direct lenders.

The competition is also extending into mid-market deals, where banks are increasingly providing debt alongside private credit providers. Recent examples include financing Bain Capital’s acquisition of Dutch IT services company HSO and Warburg Pincus’ majority buyout of Uvex Group.

The shift underscores a more balanced financing environment, giving private equity firms significant flexibility in structuring deals. With syndicated loan markets and direct lenders both active, sponsors are well-positioned to secure competitive financing for new investments and portfolio company growth.

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