Lower Middle Market Direct Lending Gains Prominence

Why is the lower middle market an attractive private credit allocation? The lower middle market offers a “target-rich environment” characterized by durable structures, lender-friendly covenants, and relationship-driven origination.

This new Investment Insights piece with Pensions & Investments, Trevor Clark, Founder and Managing Partner of TPG Twin Brook, explores why this underserved segment of the market is gaining prominence and what the landscape looks like for 2026.