
Wall Street Banks Regain LBO Market Share as Private Credit Stumbles
Wall Street banks are recovering market share in leveraged buyout financings above $1 billion from private credit lenders. After a decline to 39% in 2023, banks' share rose to over 50% in 2025. This rebound is fueled by lower interest rates, easing bank regulations, and difficulties in the private credit sector from past aggressive lending. Private credit faces rising default risks and investor pressure for liquidity. Regulatory shifts, such as potential changes to Basel III Endgame, could further advantage banks. Experts describe an ongoing tug of war, with banks seizing opportunities to compete.






















