Published in


Private Credit in the US Middle Market

A look at middle market private credit in the US in the context of current macroeconomic conditions, and potential applications of DeFi

  • Businesses in the US Middle Market — defined as companies with annual earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of between $1 million and $100 million — represent an attractive market segment for private credit investment.
  • This segment of the market includes a broad range of high growth and recession-resistant companies which are backed by well-capitalized equity investors. Private credit investments in this space carry attractive terms and have performed well historically on a risk-adjusted basis.
  • Additionally, the landscape of lenders has been shifting in recent years due to regulatory changes and other market shifts, potentially providing an opportunity for disruption by DeFi.
Source: Aldrich Capital

Composition of the US Middle Market

  • niche manufacturing (e.g., a manufacturer of specialized aircraft parts),
  • value-added distribution (e.g., importer of residential light fixtures),
  • business services (e.g., staffing company),
  • retail (e.g., franchisor of national fast-casual restaurant),
  • consumer services (e.g., car wash operator),
  • and healthcare (e.g., servicer of medical diagnostic equipment).

US Middle Market Investment Highlights

Figure 1: 2020–2022 US Middle Market Revenue Growth — Source: Golub Capital and S&P Capital IQ
US Middle Market Loan Total Return — Source: Lincoln International

Potential for Disruption by Defi



Goldfinch is a global, decentralized credit protocol for lending to real-world businesses.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Goldfinch Foundation

Goldfinch is a decentralized credit protocol that allows anyone to be a lender, not just banks.