Davis Polk partner and Finance practice head Jason Kyrwood and partner Chris Nairn-Kim were quoted in Octus discussing trends in the leveraged finance market in 2025.

“Although we saw a decrease in the number of large-cap M&A deals in 2025, the size of those deals grew considerably as buyers and lenders sought out opportunities to deploy capital at scale in matters involving high-quality assets,” Chris said.

The article noted that even though the broadly syndicated loan market has been open for private equity firms and corporates to fund their acquisitions, the competitive threat of private credit is still top of mind.

“The private credit asset class has really embedded itself as a critical player in the leveraged finance ecosystem, including with larger cap deals,” Jason said.

He added, “Private credit has been so successful that funds are now attracting enormous amounts of capital, creating an intensified pressure to deploy. And as the private credit and BSL markets converge that dynamic has inevitably put pressure on terms, even as private credit lenders strive to maintain discipline.”

“Americas Primary Market 2025 Wrap,” Octus (December 18, 2025) (subscription required)

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