Jan 2026
Capital Markets Update: Reflecting on 2025 and What Lies Ahead for the Middle Market
In December 2025, Audax Private Debt hosted its latest Capital Markets Update webinar, bringing together market data and perspectives on the environment sponsors and investors navigated in 2025 and the themes we are watching in 2026.
The PDF linked below summarizes five key takeaways through select charts, data, and commentary:
- Macro backdrop: U.S. macroeconomic signals remain mixed, with improving visibility around growth, inflation, and labor market conditions
- Interest rates: The interest rate environment appears to be transitioning, with policy rates having peaked and easing beginning to take shape
- M&A activity: Middle market M&A activity slowed in 2025 amid policy and trade uncertainty, with signs of stabilization emerging
- Deal mix: Private equity sponsor activity may continue to evolve toward new platform acquisitions as confidence in valuations and financing conditions improves
- Valuations and leverage: Middle market valuations and leverage levels have remained relatively disciplined compared with broader market segments
