LBO News & Analysis

Software (Software) Sees Loan Market Share Drop to 9% in 2026

In 2026, software companies contributed only 9% of loans issued in the US broadly syndicated loan market, halving from the 2025 level. Within the PE-backed universe, this share also declined from 21% in 2025 and a peak of 24% in 2020. The share of software in LBO financing dropped to 17.5%, marking a decade-low. Factors such as decreased capital available for technology transactions and subdued M&A activity are influencing this downturn in the sector.