U.S. direct lending activity was slower than usual in the second quarter of 2025 as macroeconomic uncertainty continues to weigh on deal activity. In the direct lending market, activity typically picks up in the second quarter, but that was not the case this year. Octus tracked 440 deals in the second quarter of 2025, 14 deals shy of the total reported in the first quarter of 2025. Activity was down not only quarter over quarter but, relative to the second quarter of 2024, the number of deals was down by 15%.