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Andalusian's $200m quarter leans on repeat borrowers

Twelve of 22 deals were follow-ons, and the platform's deployment hit a record.

At a glance

  1. Ten of the deals went to new portfolio companies; twelve were follow-ons to existing borrowers.
  2. Aaron Kless, chief executive and chief investment officer, credits “the depth of relationships and unique sourcing channels” the platform has built.
  3. The capital reached non-sponsored and sponsor-backed borrowers across specialty services, construction and building, healthcare services, hotel, gaming and leisure, and food and beverage.

Andalusian Credit Partners, a US middle-market lending platform, deployed $200 million across 22 investments in the second quarter of 2026—its most active quarter to date, according to Alternative Credit Investor. Ten of the deals went to new portfolio companies; twelve were follow-ons to existing borrowers.

Aaron Kless, chief executive and chief investment officer, credits “the depth of relationships and unique sourcing channels” the platform has built. He called the quarter a reflection of “accelerating momentum and continued maturation.” Specialty services, he says, offered the particular opportunity—businesses that are “essential, everyday...high cash flowing and resilient against broader macroeconomic pressures.” The report also links to prior coverage of a $200 million joint venture with Carlyle and a $200 million Goldman Sachs facility for Andalusian’s BDC.

Existing borrowers take the bigger share

The capital reached non-sponsored and sponsor-backed borrowers across specialty services, construction and building, healthcare services, hotel, gaming and leisure, and food and beverage. Andalusian focuses on senior secured leveraged lending, including first lien and unitranche loans.

Twelve of 22 is a heavy repeat-business rate for any middle-market lender. It points to underwriting expansion for existing borrowers rather than portfolio rotation. The follow-ons are spread across six sectors, which tempers the concentration risk that comes with repeat lending. The sector mix itself reads defensively—specialty services, healthcare, and food and beverage—with construction and leisure as the cyclical counterweight. Whether this quarter marks a new cadence or catches up from a slower spring is the number to watch in Q3. For allocators, the open question is whether Andalusian can keep this pace without pulling forward deal flow.

Reported by the Direct Lending desk from Alternative Credit Investor. Published . Corrections

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