The private debt market is experiencing strong inflows, with H1 2023 fundraising at $94.9 billion, on track for the 4th consecutive year above $200 billion. Despite a slowdown in direct lending origination, private lenders have filled the gap left by banks, gaining significant market share. Despite a decline in LBO activity, private debt managers are finding opportunities, particularly in the middle market, and are expanding into new areas like asset-backed finance.