US direct lending activity gradually climbed in 2025, with deal volumes and transaction counts reaching new highs in 4Q25 as refinancing demand and sponsor-backed deal flow supported the market, according to Debtwire’s 2025 US Direct Lender Rankings report.

Total direct lending volume reached USD 369bn across 3,533 deals in 2025, compared with USD 254.86bn across 2,551 deals in 2024, according to Debtwire data. The steep increase reflects continued growth in private credit deployment as borrowers turned to direct lenders for quicker execution and flexible financing structures.

Deal activity strengthened as the year progressed. Volumes rose from USD 74.35bn in 1Q25 with 819 deals before increasing to USD 78.99bn in 2Q25 with 847 deals and USD 96.20bn in 3Q25 with 1091 deals. Activity peaked in 4Q25 with USD 119.54bn across 776 deals, marking the strongest quarterly performance of any year since 2022.

Private credit has continued to grow, helped by features such as faster execution, quicker access to capital, and more flexible deal structures than public markets.

Market Share

Refinancing remained the dominant driver of activity across the credit markets in 2025, accounting for 34.7% of total direct lending deal volume, 68% of HY bond activity and 76% of leveraged loan activity, according to Debtwire data.

Comparatively, leveraged buyouts represented the second-largest share of direct lending activity at 27.5%, while other M&A-related financing accounted for 18.1% of issuance.

Despite refinancing dominating the market, the meaningful share of LBO and M&A financings suggests a gradual recovery in sponsor-backed dealmaking compared with the muted conditions seen in prior periods.

Rankings highlights

Ares retained its leading position in the 2025 rankings, completing 289 deals and capturing 10.1% market share.

Monroe Capital ranked second with 184 deals, followed by Barings with 176 deals. Audax Private Debt and Apollo rounded out the top five lenders by deal count.

In the large-cap segment, Audax Private Debt took first place with 67 deals and a 21% market share, narrowly ahead of Antares with 64 deals and a 20.1% share. Ares placed third with 56 deals, followed by Churchill Asset Management and Apollo, which tied for fourth place.

In mid-cap, Audax Private Debt comfortably secured the top spot with 84 deals and a 19.4% market share, followed by Churchill Asset Management in second place with 61 deals and a 14% market share. In third place, Antares took a 13.8% market share with 60 deals.

Over in the small cap space, Monroe Capital ranked first with 46 deals and a 23% market share. Antares followed in second place with 30 deals and a 15.31% market share, while Principal Alternative Credit came in third with 19 deals and a 9.7% share.