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Classified Brief — Issue 22
Tuesday · November 5, 2025
Alternative Allocation Intelligence

Middle-market direct lending spreads have widened 140bps since September — the entry window is open

As broadly syndicated loan markets reprice on rate volatility, middle-market direct lenders are seeing spread expansion not seen since Q4 2022. Senior secured deals in the $25M–$100M range are now pricing at SOFR + 550–625bps with 1–1.5% OID. For investors with a 3–5 year horizon, current entry yields of 11–13% on senior secured paper represent a historically attractive risk-adjusted return...

Agricultural land in the corn belt is pricing at 2019 multiples despite 40% higher commodity revenues

Cap rate compression in institutional farmland has stalled as interest rate normalization hits leveraged buyers. Cash buyers — particularly family offices and self-directed IRAs — are now able to acquire productive Midwest farmland at 3.8–4.2% cap rates while unlevered cash yields on crop revenue approach 5.5–6.2%. The bid-ask spread between motivated sellers and patient capital is the widest in six years...

The great de-banking of small business — and what it means for private credit allocators

Three of the top ten US community banks have tightened commercial lending standards to the most restrictive levels since 2010. The ripple effect is a structural demand shift toward private capital that is not cyclical — it reflects permanent regulatory recalibration post-SVB. Allocators positioned in small-business private credit today are underwriting a supply-demand dynamic that will persist for...

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