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Ranked by headline investable capital at their latest flagship fund close, the top lower middle market direct lenders in this list are Monroe Capital ($6.1bn), TPG Twin Brook ($3.9bn), Deerpath Capital ($3.5bn) and Freeport Financial Partners ($2.0bn). All four lend mainly to smaller US companies, with stated EBITDA ceilings from $25m (Freeport) to $50m (TPG Twin Brook).
For a sponsor, fund size signals how much a lender can hold and how long it can keep supporting add-on acquisitions. For a candidate, it shows which platforms are hiring into growing books.
This list covers the ranking, a comparison table, three unranked BDCs and one independent lender, and a short guide to using the list.
Lenders are ranked by the headline investable capital announced at the latest flagship fund close, including leverage and separately managed accounts where the lender reported them, as of November 2026. TPG Twin Brook reported total commitments only. On LP fund commitments alone, TPG Twin Brook ($3.9bn) ranks first, ahead of Monroe ($2.8bn).
Lenders without a comparable fund close, mainly listed lenders that raise money in the public markets, sit in a separate unranked group with their latest reported portfolio figures.
The table sets out each lender’s latest capital figure and the borrower size it states on its own website or in its fund announcement.
| Rank | Lender | Type | Latest capital figure | Stated borrower focus |
|---|---|---|---|---|
| 1 | Monroe Capital | Private credit manager | $6.1bn investable ($2.8bn LP commitments), Fund V (January 2026) | About $35m EBITDA or less |
| 2 | TPG Twin Brook | Platform inside a large manager | $3.9bn commitments, fifth fund (Q2 2024) | Up to $50m EBITDA, core under $25m |
| 3 | Deerpath Capital | Lower middle market senior lending specialist | $3.5bn+ investable (equity above $2bn target), Fund VII (December 2025) | Holds of $25m to $150m per borrower |
| 4 | Freeport Financial Partners | Lower middle market senior lending specialist | $2.0bn investable ($1.2bn equity), Fund VI (March 2025) | $3m to $25m EBITDA |
| Unranked | Main Street Capital | Listed BDC | $3,250.1m lower middle market portfolio (30 September 2026) | Revenue of $10m to $150m |
| Unranked | Capital Southwest | Listed BDC | Over $2.5bn invested since 2015 | $3m to $25m EBITDA typical |
| Unranked | Fidus Investment | Listed BDC | $1.4bn portfolio (30 September 2026) | Revenue of $10m to $150m |
| Unranked | Brightwood Capital Advisors | Independent lender | Not ranked | Family-owned firms, $5m to $75m EBITDA |
These four lenders raise closed-end private credit funds from institutional investors and lend mostly senior secured debt to smaller US companies.
Monroe Capital is a Chicago-based private credit manager. Monroe announced in January 2026 the final close of 2025 Monroe Capital Private Credit Fund V, with $6.1bn of total investable capital.
Monroe splits that into $2.8bn of investor commitments, $1.5bn of targeted leverage and $1.8bn from separately managed accounts. These are single-investor mandates that follow the same strategy. The fund targets lower middle market US companies with about $35m of EBITDA or less.
By 31 December 2025, Fund V had committed over $3.2bn to more than 130 borrowers. Monroe’s previous fund, Fund IV, closed in April 2022 with $4.8bn of investable capital, so the platform grew between vintages.
TPG Twin Brook is the middle market direct lending arm of TPG. TPG held the final close of Twin Brook’s fifth drawdown fund in the second quarter of 2024, with $3.9bn raised, 13% more than its predecessor. TPG Twin Brook Fund VI was in market in 2025, seeking $3.5bn, Bloomberg Law reported in February 2025.
TPG says the platform finances sponsor-led buyouts and recapitalisations of companies with up to $50m of EBITDA, with a core emphasis on companies below $25m. It also runs a non-traded business development company, TCAP, which had $2.5bn of total assets under management at mid-2024.
Twin Brook suits sponsors who want one lender that can stay with a company as it grows from the lower middle market towards $50m of EBITDA.
Deerpath Capital provides cash-flow based senior debt to lower middle market companies, mainly those owned by private equity sponsors. In December 2025 Deerpath closed Deerpath Fund VII, its seventh flagship senior direct lending fund, above its $2bn equity target and with more than $3.5bn of investable capital.
Alternative Credit Investor put Deerpath’s cumulative lower middle market senior lending above $14bn and its assets under management at around $9bn. Fund VII drew commitments from more than 70 investors across the US, Canada, the UK, Germany, Switzerland and Korea.
Deerpath’s website states that it invests between $25m and $150m per borrower and can fund add-on acquisitions as a company grows.
Freeport Financial Partners is a Chicago lender focused squarely on the lower middle market. Freeport announced in March 2025 that Freeport First Lien Loan Fund VI had closed with $1.2bn of equity commitments and $2.0bn of investable capital.
The fund lends to companies with EBITDA between $3m and $25m, the tightest fit with the classic lower middle market band in this list. Freeport’s website lists revolving credit lines, first lien term loans, delayed draw facilities, one-stop facilities and equity co-investments.
A one-stop facility (a single loan covering the whole debt need, often called unitranche) is the usual product at this size. Our guide to unitranche vs mezzanine financing explains how it compares with a senior and junior split.
The three BDCs raise permanent capital rather than closed-end drawdown funds, and Brightwood has no recently announced flagship close, so they sit outside the ranking. A business development company (BDC) is a US closed-end vehicle, often listed, that lends to and invests in private companies.
Main Street Capital is a Houston-based listed BDC that offers one-stop debt and equity to lower middle market companies. Its third quarter 2026 results, released on 5 November 2026, showed a lower middle market portfolio of $3,250.1m across 92 companies at 30 September 2026.
Main Street defines this segment by revenue, with portfolio companies that generally have annual revenues between $10m and $150m. Its lower middle market investments fund buyouts, recapitalisations, growth financings and acquisitions. A separate private loan strategy lends to companies owned by private equity funds.
Capital Southwest is a Dallas-based listed BDC. Its investment criteria page gives a minimum EBITDA of $3m, a typical range of $3m to $25m, typical financings of $5m to $75m and a target hold of $5m to $45m.
The firm offers unitranche, first lien and subordinated debt, plus non-control equity co-investments alongside its loans. Capital Southwest says it has invested over $2.5bn in more than 150 companies since 2015.
Fidus Investment is a listed BDC based in Evanston, Illinois, that invests debt and equity in US lower middle market companies. Its third quarter 2026 results reported a portfolio of $1.4bn across 99 active companies at 30 September 2026.
Fidus defines the lower middle market as US companies with revenues between $10m and $150m. It backs change-of-control deals, recapitalisations, acquisitions and growth financings, working with owners, management teams and sponsors.
Brightwood Capital Advisors is an independent lender with offices in New York and Chicago. Its website describes relationship-based origination aimed at family-owned businesses with $5m to $75m of EBITDA.
Brightwood offers first and second lien term loans, unitranche facilities, mezzanine debt and minority equity. That range makes it relevant to owner-led companies that do not have a private equity sponsor behind them.
The right lender depends on who you are and what you need from the relationship. Use these rules by reader type.
If you are weighing offers, our breakdown of private credit salaries by level sets out pay at each level.
Here is an illustrative example of how hold size narrows the field. The numbers are an example only.
At $24m, the loan sits just below Deerpath’s stated $25m minimum per borrower. It fits inside Capital Southwest’s $5m to $45m target hold and Freeport’s $3m to $25m EBITDA band. A sponsor in this example would start with those two and ask Deerpath whether a slightly larger facility with a delayed draw tranche (debt committed now and drawn later for acquisitions) would work.
Lenders such as Deerpath also fund loans through collateralised loan obligations (CLOs), with $1.6bn of Deerpath CLO issuance across three deals in 2025. Our explainer on middle-market CLOs vs broadly syndicated CLOs explains how that funding works. For the large European platforms, see our list of top private credit firms in Europe.
Most lenders treat companies with about $3m to $25m of EBITDA as the lower middle market. Freeport uses exactly that band and Capital Southwest gives $3m to $25m as typical. Main Street and Fidus define the segment by revenue instead, at $10m to $150m a year.
By headline investable capital, Monroe Capital is the largest in this list, with $6.1bn for Fund V announced in January 2026. That total includes leverage and separately managed accounts. On investor commitments alone, TPG Twin Brook leads, with $3.9bn for its fifth fund against Monroe’s $2.8bn.
Most lenders in this segment focus on sponsor-backed companies, but some also serve owner-led businesses. Fidus works with business owners and management teams as well as sponsors. Brightwood says its origination is aimed at family-owned businesses with $5m to $75m of EBITDA.
A BDC is a permanent, often listed, vehicle that raises capital from public investors and reports quarterly to the SEC. A private credit fund raises fixed commitments from institutions for a set term. BDCs can keep lending without a new fundraise, while funds return capital as loans repay.
Monroe Capital, TPG Twin Brook, Deerpath Capital and Freeport Financial Partners lead this list by headline capital at their latest flagship close for US lower middle market lending. Before approaching any of them, check that your loan size fits the lender’s stated hold range and EBITDA band.
P.S. To practise the credit analysis these lenders run on every deal, try the Excel Test – Distressed Debt and work through a credit case the way a lender would. Our Premium Resources include additional tools you might find useful. For weekly finance updates and the latest financial reports, sign up to the Private Equity Bros newsletter.
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