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houlihan lokey

Private Credit Divide: 12% of Small Loans Face Distress

September 14, 2026 by Bruno

Editorial illustration: A divided financial landscape contrasting resilient corporate towers with distressed middle-market buildings under credit clamps and storm clouds.

Houlihan Lokey’s DataBank reveals a divide in private credit: distressed loans jumped to 12% for small borrowers while mega-cap direct lending holds firm.

Categories Capital Markets, Market Trend Tags capital markets, credit distress, direct lending, houlihan lokey, middle market loans, private credit

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