Private Credit

Putting Direct Lending in Context

June 2026 – 7 min read

Private credit is drawing increased attention, but not all strategies behave the same. Traditional middle market direct lending is best understood by looking beyond headlines to underlying fundamentals—an approach that helps explain its continued role in long‑term portfolios.

Private credit has been under a brighter spotlight recently. As the market has grown in size and visibility, periods of uncertainty have drawn attention to the asset class more broadly, and to direct lending in particular, often fueled by headlines tied to isolated credit events or shifts in capital flows. While that scrutiny has sharpened the conversation, it does not always capture how the strategy actually performs across cycles.

Against that backdrop, it is worth revisiting what traditional middle market direct lending is, including what has changed, what hasn’t changed, and how the market continues to evolve. Its defining characteristics—seniority, contractual income, and an emphasis on downside protection—help explain why the strategy continues to play a meaningful role in long‑term portfolio construction.

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Headshot of Tyler Gately smiling at the camera.

Tyler Gately

Head of North America Direct Lending
Headshot of Stuart Mathieson smiling at the camera.

Stuart Mathieson

Head of European Private Credit & Capital Solutions

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