Fueled by ultra-low rates and an economy reopening from the dislocations of Covid-19, a variety of leveraged finance categories— including middle market direct lending—set new issuance records in 2021. However, 2022 seemed to be a far more nuanced environment. In the Q&A below, First Eagle Alternative Credit’s Chris Flynn, president, and Michelle Handy, head of portfolio and underwriting, discuss their perspectives on the middle market direct lending space and how the team is positioned heading into 2023.