D A D Study Overview and Latest Findings
The D A D study tracks private credit markets, special purpose acquisition company activity, and investor outcomes using transaction-level data from regulatory filings and market reports. The latest dataset highlights a sharp rise in direct lending volume, with U.S. private credit assets under management surpassing $2 trillion in 2024, according to a recent industry analysis from Forbes. Deal counts in middle-market lending grew by roughly 15 percent year over year, while average loan sizes expanded as sponsors pursued larger, longer-duration positions.
SPAC-related research within the D A D study shows a sharp decline in completed mergers and a rise in redemptions and liquidations. In 2024, fewer than 30 SPACs completed de-SPAC transactions in the United States, compared with over 60 in 2021, based on data compiled by Forbes. Average trust values at liquidation fell below $100 million, and investor redemption rates exceeded 80 percent in several quarters, signaling reduced sponsor confidence and tighter public-market conditions.
Private Credit Deal Structure and Performance
D A D study breakdowns show that senior secured direct loans now account for more than half of new private credit originations, with unitranche facilities gaining share among mid-market borrowers. Average interest rates on new loans have risen above 11 percent, reflecting higher benchmark rates and wider risk premiums, as reported by market data providers cited in Forbes. Collateral coverage ratios remain above 1.0x for most deals, but covenant-lite structures have become more common, with over 70 percent of new loans offering limited maintenance covenants.
Performance data in the D A D study indicates that default rates for middle-market private credit have edged higher, reaching roughly 4 to 5 percent in 2024, while recovery rates remain below 60 cents on the dollar for stressed loans. Net IRR for large-cap private credit funds has compressed to the low double digits, with top-quartile funds still delivering returns above 12 percent, according to a recent performance survey from Forbes. Secondary sales of private credit assets have accelerated, with bid-ask spreads widening as liquidity concerns grow among institutional investors.
SPAC Market Structure and Regulatory Developments
D A D study analysis of SPAC formation activity shows that new trust registrations fell to their lowest level in a decade, with fewer than 200 blank-check companies formed in the United States during 2024. The median SPAC trust size has shrunk to around $250 million, and underwriter fees have compressed as sponsors face difficulty completing transactions in a skeptical public market, per data from SEC filings reviewed by Forbes. PIPE commitments in SPAC deals have also declined, with many targets relying more heavily on traditional equity financing after separation.
Regulatory scrutiny remains a central theme in the D A D study, with the SEC continuing to review SPAC disclosure practices, target company projections, and sponsor compensation structures. Recent enforcement actions have focused on misleading projections and inadequate risk disclosures, leading several SPAC sponsors to settle charges without admitting wrongdoing, as noted in SEC press releases. The D A D study tracks these enforcement outcomes alongside market data, showing that investor protection rulings have contributed to lower public confidence and reduced SPAC pipeline activity.